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The Paris Paint Company is in the process of planning labor force requirements and production levels for the next four quarters. The marketing department
The Paris Paint Company is in the process of planning labor force requirements and production levels for the next four quarters. The marketing department has provided production with the following forecasts of demand for Paris Paint over the next year: Quarter Demand Forecast (In thousands of Gallons) 1 357 2 664 3 4 195 167 Assume that there are currently 280 employees with the company. Employees are hired for at least one full quarter. Hiring costs amount to $1,200 per employee and firing costs are $2,500 per employee. Inventory costs are $1 per gallon per quarter. It is estimated that one worker produces 1.1 Thousands of gallons of paint each quarter. Assume that Paris currently has 99,000 gallons of paint in inventory. Determine the minimum constant workforce plan for Paris Paint and the cost of the plan. Assume that stock-outs are not allowed.
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