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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; Requirement Produce # of Employees
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 1 250 2 500 The current workforce level is 4 workers. Production rate is 150/worker/month. 3 450 The following costs apply:Wages = $2,000/worker/month Hiring cost $200/worker Layoff Cost $250/worker Inventory holding cost = $1/unit/month Back ordering cost = $2/unit/month 4 500 What would be the production rate per month for a level strategy? 5 250 6 750
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