Question: 15 3001 Beginning Workers Beginning inventory = Productive hours/worker/day = Units per worker per month Paid hours/worker/day = Working days in month 7.251 25 8

15 3001 Beginning Workers Beginning inventory = Productive hours/worker/day = Units per worker per month Paid hours/worker/day = Working days in month 7.251 25 8 200 Materials - Holding costs Marginal cost of backorder = Hiring and training cost = Layoff costs - Straight time labor cost/hr. $1,500 $450 $600 $5001 $800 $250 Feb Mar Apr June 640 1600 1910 May 1,050 10 500 O 300 10 O 0 200 640 590 900 1,050 500 15 8 26 24 36 42 O 18 o 121 61 Chase Strategy an Demand 500 Beginning Inv. Net Requirements Beginning Workers Hired Fired Req. Workers Production Ending Inventory Material Cost Backorder Cost Labor Cost 7 ol 2 0 OL 22 8 26 24 36 42 20 200 650 600 900 1,050 500 O 10 10 0 0 What is the total labor cost? $672.000 $720,000 $565,500 $624,000

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