Question: A factor that Joel Kirkwood must consider is his workforce. Labor is a large expense and is tied to the resource planning system utilized. Therefore,

A factor that Joel Kirkwood must consider is his workforce. Labor is a large expense and is tied to the resource planning system utilized. Therefore, Joel needs to select a production method that will ensure capacity meets the specific business unit demand and its labor requirement. Joel is scheduled to meet with Estella on Monday to share his findings. The following are the details for labor cost per hour, number of hours worked per day per worker, number of days worked per month, and assembly time per unit in hours:
Labor cost per hour = $17.50
Number of hours worked per day per worker =8
Number of days worked per month =21
Assembly time per unit in hours =7
The firm has an ending inventory of 500 at the end of the last year. Below is the monthly demand for the products.

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