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Plan production for the next year. The demand forecast is: spring, 20,000; summer, 10,000; fall, 15,000; winter, 18,000. At the beginning of spring, you have 70 workers and 1,000 units in inventory. The union contract specifies that you may lay off workers only once a year, at the beginning of summer. Also, you may hire new workers only at the end of summer to begin regular work in the fall. The number of workers laid off at the beginning of summer and the number hired at the end of summer should result in planned production levels for summer and fall that equal the demand forecasts for summer and fall, respectively. If demand exceeds supply, use overtime in spring only, which means that backorders could occur in winter. You are given these costs: hiring, $100 per new worker; layoff, $200 per worker laid off; holding, $20 per unit-quarter; backorder cost, $8 per unit; straight-time labor, $10 per hour; overtime, $15 per hour. Productivity is 0.5 unit per worker hour, eight hours per day, 50 days per quarter. Find the total cost. Note: Hiring expense occurs at beginning of fall. Please with excel formulas!

Example:

Period	Spring	Summer	Fall	Winter	Total
Forecast	20,000	10,000	15,000	18,000	63,000
Beginning Inventory	1,000
Production required	19,000	10,000	15,000	18,000
Production hours required	38,000	20,000	30,000	36,000
Regular Workforce	70	50	75	75
Regular Production	14,000	10,000	15,000	15,000
Overtime Hours	10,000
Overtime Production	5,000
Total Production	19,000	10,000	15,000	15,000
Ending Inventory
Backorder				3,000
Hiring		25
Layoff		20
Costs
Straight Time Cost	2,80,000	2,00,000	3,00,000	3,00,000	10,80,000
Overtime	1,50,000				1,50,000
Inventory
Backorder				24,000	24,000
Hiring		2,500			2,500
Layoff		4,000			4,000
Total

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