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The current number of employees = 125 Number of working days per quarter = 65 days Number of hours per day per person = 8

The current number of employees = 125

Number of working days per quarter = 65 days

Number of hours per day per person = 8 hours

Labor standard to produce one unit = 5 hours

Demand for four quarters respectively: 12,300, 12,500, 12,200, and 13,000 units

Cost of hiring a worker = $800

Cost of laying off a worker = $500

Inventory-carrying cost per unit per year = $60

a.

Using a level production plan, how many workers are needed each quarter?

b.

For a chase demand plan, how many workers are needed each quarter respectively?

c.

What is the average inventory-carrying cost using a level production plan?

d.

What is the total cost to hire workers under a chase demand plan?

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