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Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last quarter of the year. Regular production
Trexoid Inc. makes a popular video game console. Demand varies each month, with highest demand coming in the last quarter of the year. Regular production costs are $ per unit and inventory carrying cost is $ per unit per quarter. Overtime production cost is $ per unit. Assume that the current Trexoid employees can produce a total of units per quarter in regular production and can work enough overtime hours to produce the amount required if a chase plan is employed. On the other hand, hiring cost is $ per employee and firing cost is $ per employee. Trexoid currently has zero inventory on hand, and they would like to have zero inventories at the end of the year. Assume hiring and layofffiring if necessary, occur at the beginning of the quarter. Forecast demand is as follows:
Quarter units
Quarter units
Quarter units
Quarter units
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