Zebra Technologies Corporation (ZTC) manufactures a number of navigation packages for pleasure boats. Their plant in Alabama wants to try a fixed production schedule for the next 6 months. When regular-time production and inventory cannot meet demand, they plan on first using overtime, and if that is insufficient, they will subcontract out in order to meet demand. The forecast for the next 6 months and key production data are provided below. Demand Jan 700 Feb Mar Apr May 600 400 650 850 Jun 1,000 Subcontracting Cost Production Rate 65 units/month/employee Employees Production Cost Backorder Cost Overtime Cost Overtime Limit Hiring Cost $100/units $175/unit/month $150/unit 100 units $150/employee Subcontracting Limit Average Inventory Cost Initial Inventory Firing Cost 10 $200/unit 200 units maximum $20/unit/month 100 units $200/employee