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A. Juarez, Mexico, manufacturer of paint has developed the demand forecast of the next four quarters: Demand Forecast Quarter (in thousands of gallons) 1

 

A. Juarez, Mexico, manufacturer of paint has developed the demand forecast of the next four quarters: Demand Forecast Quarter (in thousands of gallons) 1 2 3 4 380 630 220 160 Based on past observation, one worker can produce 1,000 gallons of paint cach quarter. Employees are hired per quarter at a cost of $1,200 per employee and firing costs are $2,500 per employee. There are currently 280 employees with the company, Inventory costs are $1 per gallon per quarter. Assume that the company has 80,000 gallons of paint in inventory and would like to end the year with at least 20,000 gallons. Part 1 J. Find the constant work force production plan, 2. Compute the cost of this constant work force production plan. Part 2 3. What is the production plan thr fottows the che strategy? Compute the cost of this zero inventory plan

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