requirements over a typical six-month periou are as TUIIOW 1 3. 4. 5. Requirement 750 800 750 600 900 700 Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory The current workforce level is 4 workers. Production rate is 150/worker/month. The following costs apply Wages - $2,000/worker/month Hiring cost - $200/worker Layoff Cost - $250/worker Inventory holding cost - $1/unit/month Back ordering cost -$2/unit/month If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period. O 500 1100 450 O 900
requirements over a typical six-month periou are as TUIIOW 1 3. 4. 5. Requirement 750 800 750 600 900 700 Produce # of Employees Hire Layoff Beginning Inventory Ending Inventory Average Inventory The current workforce level is 4 workers. Production rate is 150/worker/month. The following costs apply Wages - $2,000/worker/month Hiring cost - $200/worker Layoff Cost - $250/worker Inventory holding cost - $1/unit/month Back ordering cost -$2/unit/month If a Level strategy is used, what is the total inventory cost, which includes inventory holding cost and back ordering cost? First, you need to determine the quantity to produce every period. O 500 1100 450 O 900
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:requirements over a typical six-month periöd are as
1
4
5.
6
Requirement 750
800
750
600
900
700
Produce
# of
Employees
Hire
Layoff
Beginning
Inventory
Ending
Inventory
Average
Inventory
The current workforce level is 4 workers.
Production rate is 150/worker/month.
The following costs apply:Wages = $2,000/worker/month
Hiring cost - $200/worker
Layoff Cost = $250/worker
Inventory holding cost = $1/unit/month
Back ordering cost - $2/unit/month
If a Level strategy is used, what is the total inventory cost, which
includes inventory holding cost and back ordering cost? First, you
need to determine the quantity to produce every period.
00s O
O 1100
O 450
O 900
3.
2.
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