Question: Refer to Solved Problem 1 Suppose another option is to
Refer to Solved Problem 1. Suppose another option is to use part- time workers to assist during seasonal peaks. The cost per unit, including hiring and training, is $ 11. The output rate is 10 units per worker per period for all workers. A maximum of 10 part- time workers can be used, and the same number of part- time workers must be used in all periods that have part- time workers. The ending inventory in period 9 should be 10 units. The limit on backlogs is 20 units per period. Try to make up backlogs as soon as possible. Compute the total cost for this plan, and compare it to the cost of the plan used in the solved problem. Assume 20 full-time workers and regular monthly production regular capacity.
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