Question
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 1 800 The current workforce level is 4 workers. Production rate is 200/worker/month. 2 Inventory holding cost = $1/unit/month Back ordering cost = $2/unit/month 600 The following costs apply:Wages $2.500/worker/month Hiring cost-$200/worker Layoff Cost $250/worker 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 regular wages? 6 800
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