Computer's R Us, is a manufacturer of computer keyboards. The requirements over a typical six-month period are as follows; Requirement Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory 1 800 The current workforce level is 4 workers. Production rate is 200/worker/month. 2 600 The following costs apply:Wages = $2,500/worker/month Hiring cost = $200/worker Layoff Cost = $250/worker Inventory holding cost = $1/unit/month Back ordering cost = $2/unit/month 3 400 4 600 5 800 If a Chase strategy is applied, and hiring or layoffs are used as needed, what is the cost of hiring and layoffs? 6 800

The current workforce level is 4 workers. Production rate is 200 /worker/month. The following costs apply: Wages =$2,500/ worker /month Hiring cost =$200/ worker Layoff Cost =$250/ worker Inventory holding cost =$1/ unit / month Back ordering cost =$2/ unit/month