Question: Her operations manager is considering a new plan, which begins in January with units of inventory on hand. Stockout cost of lost sales is $
Her operations manager is considering a new plan, which begins in January with units of inventory on hand. Stockout cost of lost sales is $ per unit. Inventory holding cost is $ per unit per month. Ignore any idletime costs. The plan is called plan A
Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both units per month. The cost of hiring additional workers is $ per unit. The cost of laying off workers is $ per unit. Evaluate this plan. Enter all responses as whole numbers
Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from in January to in February incurs a cost of layoff for units in February.
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