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

Exercise 33

Formulate a level sales and operations plan for a company with the following predicted demand: The beginning workforce is 125 employees. The monthly output per employee is 150 units. The costs to hire and lay off a worker are $2500 and $4000, respectively. The cost to carry an item in inventory $10 one month is estimated at $25, and the stockout cost is 525 per unit. Show the production schedule, the inventory levels, and the changes in workforce from period to period. Compute the plan's cost.