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

Exercise 14

A company believes that its demand for the next six months is as follows: The output per worker per month is 40 units. The per worker hiring and lay off costs are $2000 and $3000, respectively. There is no beginning inventory, and the starting workforce is 200. It cost the company $20 to carry an item in inventory each month, and the stockout costs is estimated to be $50 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.