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The total cost of hirings = $. (Enter your response as a whole number.)

The total cost of hirings = $. (Enter your response as a whole number.)

Practical Management Science
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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Caluclate Total Cost of Hirings

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 2,100 2,100 1,900 1,900 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $20 per unit p month. Ignore any idle-time costs. The plan is called plan A. 0 December Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $80 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,500 in February incurs a cost of layoff for 100 units in February. 1 January 2 February Hire Stockouts Period Month Demand Production (Units) (Units) Inventory (Units) 1,600 1,600 0 1,500 0 100 1,700 200 0 Hin 1,700 0 0 1,900 200 0 2,100 200 2,100 0 1,900 0 3 March 4 April 5 May 6 June January February March April 7 July 8 August 1,600 1,500 1,700 1,700 1,900 2,100 2,100 1,500 1,700 1,700 1,900 1,900 May June July August 1,900 The total cost of hirings = $ (Enter your response as a whole number.) Layoff 0 0 0 200 Ending 200 300 100 100 0 0 0 200 200 0 0 0 100 200 0 0 0
Transcribed Image Text:The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 2,100 2,100 1,900 1,900 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $20 per unit p month. Ignore any idle-time costs. The plan is called plan A. 0 December Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $80 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,500 in February incurs a cost of layoff for 100 units in February. 1 January 2 February Hire Stockouts Period Month Demand Production (Units) (Units) Inventory (Units) 1,600 1,600 0 1,500 0 100 1,700 200 0 Hin 1,700 0 0 1,900 200 0 2,100 200 2,100 0 1,900 0 3 March 4 April 5 May 6 June January February March April 7 July 8 August 1,600 1,500 1,700 1,700 1,900 2,100 2,100 1,500 1,700 1,700 1,900 1,900 May June July August 1,900 The total cost of hirings = $ (Enter your response as a whole number.) Layoff 0 0 0 200 Ending 200 300 100 100 0 0 0 200 200 0 0 0 100 200 0 0 0
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