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Computer s R Us , is a manufacturer of computer keyboards. The requirements over a typical six - month period are as follows; 1 2
Computers R Us is a manufacturer of computer keyboards. The requirements over a typical sixmonth period are as follows;
Requirement
Produce
# of Employees
Hire
Layoff
Beginning Inventory
Ending Inventory
Average Inventory
The current workforce level is workers.
Production rate is workermonth
The following costs apply:Wages $workermonth
Hiring cost $worker
Layoff Cost $worker
Inventory holding cost $unitmonth
Back ordering cost $unitmonth
If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period.
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