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Assignment help 3389

Develop a production plan and calculate the annual cost for a firm whose demand forecast isfall, 10,000; winter, 8,000; spring, 7,000; summer, 12,000. Inventory at the beginning off all is 500units. At the beginning of fall you currently have 30 workers, but you plan to hire temporary workersat the beginning of summer and lay them off at the end of the summer. In addition, you havenegotiated with the union an option to use the regular workforce on overtime during winter orspring if overtime is necessary to prevent stock outs at the end of those quarters. Overtime is notavailable during the fall. Relevant costs are: hiring, $100 for each temp; layoff, $200 for each workerlaid off; inventory holding, $5 per unit-quarter; backorder, $10 per unit; straight time, $5 per hour;overtime, $8 per hour.


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