Question: Using the data in Problem 13.9, prepare the following two plans. Compare Plans C and D with Plans A and B and make a recommendation.

Using the data in Problem 13.9, prepare the following two plans. Compare Plans C and D with Plans A and B and make a recommendation.

◆ Plan C – A chase plan. Assume the current workforce at 20 workers and productivity at 100 units per worker per month. Hiring cost is 500 Yuan per worker and layoff cost is 1,000 Yuan per worker.

◆ Plan D – Use a steady workforce of 25 workers. Permit a maximum of 25% overtime in regular production. Overtime cost is 110 Yuan per unit. lop52

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