Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Exercise 5

Appliances Inc.is preparing an aggregate production plan for washers for the next four months.The company's expected monthly demand is given below in the chart.The company will have 500 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month.Below is other critical
data:
Production cost per unit = $300
Inventory carrying cost per month per unit = $50 (based on ending month inventory)
Hiring cost per worker = $1000
Firing cost per worker = $2000
Beginning number of workers = 10
Each worker can produce 100 units per month.