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1) Answer the following questions applying the Zero Inventory strategy . Assume one daily shift of 8 hours, a $20 hour salary, a hiring cost

1) Answer the following questions applying the Zero Inventory strategy. Assume one daily shift of 8 hours, a $20 hour salary, a hiring cost of $450, a firing cost of $600, a storage cost of $5 , and a late order cost of $15 .

January

February

March

April

May

June

Total

1

Days

21

20

23

21

22

22

129

2

Units per Worker

126

3

Demand

1840

4068

3980

3540

3180

2642

19250

4

Workers Needed

5

Workers Available

30

6

Workers Hired

7

Hiring Cost

8

Workers Fired

9

Firing Cost

10

Current Workers

11

Labor Cost

12

Produced Units

13

Net Inventory

14

Storage Cost

15

Late Orders Cost

16

Total Cost

a) Workers needed in February:

b) Labor cost in March:

c) Produced units in June:

d) Total Cost of the project:

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