We R Toys sells Game Girls for $50 a piece. At the end of June, the company has an inventory of 75,000 Game Girls and they want to end December having satisfied all demand for the six months. Capacity of the production facility is set purely by the number of workers assembling the Game Girls. At the end of June, the company has a workforce of 1,500 employees, each of whom regularly work 10 hours a day at $15/hour for 22 days each month. Company policy requires that no employee work more than 25 hours of overtime per month. The company is also limited in space for their employees to do productive work. Thus, they cant have any more than 1,700 workers employed at the plant at any given month. They also want to be efficient with their machinery and thus wont allow a total workforce below 1200 workers. The following are the estimated monthly demands for Game Girls over the next six months:

Month	July	August	September	October	November	December
Demand Forecast	110,000	250,000	300,000	130,000	110,000	100,000

Material costs per unit are $12, inventory holding costs are $2/unit/month, and the marginal cost of stocking out is $10/unit/month. In addition, laying off a worker costs $5,000 per worker while hiring a worker costs the company $10,000 per worker. 200 labor hours are required to produce 100 units. Regular time costs are $15 per labor hour while overtime costs $22.50 per labor hour. Subcontracting is also available and costs $55 per unit (this includes the cost of materials).

Sandra, the supply chain manager, is concerned about controlling costs during the periods of surging demand over the summer/fall holidays, thus proposes to her colleague Bill that the price be lowered by 5% for the month of July. This would likely increase Julys demand by 30 percent due to new customers being attracted to Game Girl. In addition, 15 percent of each of the following two months of demand would occur in July as forward buys. She believes strongly that this leveling of demand will help the companys profitability.

Bill thinks that Sandras plan will not be more profitable for the company compared to not running any promotion. Who is right? Backup your statement by creating two financially optimized aggregate plans (one with promotion and one without). However, only save the excel file containing Sandras promotion plan. In this file, summarize the financial results of the two plans you made and your final conclusion.

USING EXCEL SHEET