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P team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one - time stockout
P team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming onetime stockout costs for lost sales of $ per unit, carrying costs of $ per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis:
Vary the workforce to produce the prior month's demand. Demand was units in June. The cost of hiring additional workers is $ per unit produced. The cost of layoffs is $ per unit cut nter all responses as whole numbers.
th hiring and layoff costs are micurred in the month of the change ie going from production of in July to in August requires a layoff and related costs of units in August
tableMonthDemand,Production,tableHireUnitstableLayoffUnitstableEndingInventorytableStockoutsUnitsJuly,August,September,October,November,December,
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