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 1 500 The current workforce level is 4 workers. Production rate is 125/worker/month. 2 625 The following costs apply:Wages= $2,250/worker/month Hiring cost = $200/worker Layoff Cost = $250/worker Inventory holding cost = $1/unit/month Back ordering cost = $2/unit/month 3 625 4 750 5 500 If a Chase strategy is applied, and hiring or layoffs are used as needed, what is the cost of hiring and layoffs? 6 375
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