Managing Supply Chain and Operations 1st Edition by Thomas Foster ,Scott Sampson,Cynthia Wallin,Scott Webb

Exercise 7

A company has predicted the following demands for the next six months:
A single worker working for one month can produce 125 units. The beginning workforce is 50 workers. It costs the company $1500 to hire one worker, and it costs the company $2500 to lay off a worker. The cost to carry an item is $15 per unit per month. The stockout cost is estimated to be $40 per unit.
Develop a chase sales and operations plan for this firm. Develop the monthly production schedule and show the labor workforce and inventory levels. Finally, compute the cost of the plan.