Question
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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