What if we are further imposed by an overtime production capacity constraint? For example, Month 5 requires OT production of 288 units. However, we can produce at most 200 OT units in that month. What would you do under this circumstance?

Agg_Plan-5 Reconsider the Level Plan examined in the class. Suppose we now have only 12 workers, management would like you to develop a mixed-strategy plan that is still Level in nature, while using OT (overtime) to supplement the possible deficiencies in regular production. Use the following table to do your analysis. Hint: (1) 12 workers can produce (12)x(8hr/day)/(2hr/unit)=48 units/day using regular time. (2) Assume there is no beginning inventory. (3) Negative Ending Inventory means shortage, which requires Overtime Production to make it up. (4) After OT makes it up, revise the negative Ending Inventory back to "zero". Month Demand Production Regular Time Ending Overtime Days Production amount Inventory Production 1000 20 48x20=960 2 800 18 3 900 21 4 1300 22 5 1200 19 Sum 5200 100 Total labor cost = ($15/hr)x(2hr/unit)x Total inventory cost = ($20/unit)x Total OT cost = ($25/hr)x Total cost = $