# Use the following data for the next three questions (Q 16 to Q 18) A company has the following demand for the next three months.

16. Use the following data for the next three questions (Q 16 to Q 18)A company has the following demand for the next three months.WORKING DAYS 21 20 22 19 20 18 Assume that an employee contributes 8 regular working hours per day. Overtime capacity is limited to a maximum of 25 percent regular time capacity. In addition, the following data are available.Time to produce one unit 4 hours Shortage Cost \$10/unit/month Beginning Inventory 0 Inventory Carrying Cost \$2/unit/month Hiring Cost/Worker \$100 Firing Cost/Worker \$100 Regular Time Labor Cost \$10/hour Overtime Labor Cost 20% more than regular cost Round the number of workers to the next higher integer and production to nearest lower integer.16. What is the overtime production capacity (maximum number of units that can be produced in overtime) in February if the number of workers is 15? a.720 b.600 c.150 d.75 ——————————————————————————–17. Suppose chase policy is being used, that is, the number of workers is changed every month to match demand with capacity. How many workers will you fire in March? (Note: you do not need the beginning number of workers to solve this problem). a.2 b.None c.16 d.14 e.Cannot be determined ——————————————————————————–18. Suppose 15 workers are working in every month. What will be the total regular time cost for all months? a.18,000 b.14,400 c.144,000

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