Answered step by step
Verified Expert Solution
Question
1 Approved Answer
John Smith has a small farm in San Diego, California, that produces plums. The plums are dried on the location and sold to a variety
John Smith has a small farm in San Diego, California, that produces plums. The plums are dried on the
location and sold to a variety of supermarkets. Based on mathematical models, he forecasts that sales over
the next quarters in thousands of packages will be as follows:
Assume that each worker stays on the job for at least one quarter, and that Smith currently has three
workers on the payroll. He calculates that he will have packages on hand at the end of the current
quarter and wants to keep a safety stock of packages at the end of the sixth quarter. Assume that, on
average, each worker is paid $ per quarter and is responsible for producing packages.
Inventory costs are estimated to be cents per package per quarter, and shortages are not allowed. Based
on the effort of interviewing and training new workers, Farmer Smith estimates that it costs $ for each
worker hired. Severance pay amounts to $ per worker.
a Determine the level outputworkforce plan that he will need over the next quarters.
b Evaluate the total cost of the plan found in part a
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started