Using the following table:

February March Forecast 80,640 64,000 Beginning Inventory

Production required

Production hours required

Regular workforce

Regular production

Total Production

Ending inventory

Ending backorders

Workers hired

Workers layed off

If demand exceeds supply, then backorders occur. There are 100 workers on January 31. You are given the following demand forecast: February, 80,640; March, 64,000; Productivity is four units per worker hour, eight hours per day, 20 days per month. Assume zero inventory on February 1. Costs are hiring, $52 per new worker; layoff, $72 per worker laid off; inventory holding, $12 per unit-month; straight-time labor, $8 per hour; overtime, $12 per hour; backorder, $16 per unit.

Develop a production plan and calculate the total cost of this plan.