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 100/worker/month. 2 600 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 3 800 What would be the production rate per month for a level strategy? 4 700 5 700 6 900
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