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Mary Rhodes, operations manager at Burnaby Furniture, has received estimates of demand requirements: July Aug. Sept. Oct. Nov. Dec. 1,000 1,200 1,400 1,800 1,800 1,600
Mary Rhodes, operations manager at Burnaby Furniture, has received estimates of demand requirements: July Aug. Sept. Oct. Nov. Dec. 1,000 1,200 1,400 1,800 1,800 1,600 Assuming stockout costs for lost sales of $100 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: . Plan B: Vary the workforce, which performs at a current production level of 1,300 units per month. The cost of hiring additional workers is $35 per unit produced. The cost of layoffs is $60 per unit cut back. Fill in the table below. (Enter your responses as whole numbers). Hire Layoff Month Demand Production (Units) (Units) 1 July 1000 1200 2 August 1200 1300 3 September 1400 1400 4 October 1800 1800 5 November 1800 1800 6 December 1600 1600 The total hiring cost is $ . (Enter your response as a whole number.) The total layoff cost is $ . (Enter your response as a whole number.) The total cost, excluding normal time labour costs, for Plan B is $ . (Enter your response as a whole number.)
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