You notice that the demand for apples follows the following pattern: Period Tons Apples Demanded Jan -
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Question:
You notice that the demand for apples follows the following pattern:
Period | Tons Apples Demanded |
Jan - Feb | 50 |
Mar - Apr | 110 |
May - Jun | 260 |
Jul - Aug | 310 |
Sep - Oct | 130 |
Nov - Dec | 50 |
You also have received the following data from the apple controlling group:
Cost to store 1 ton of apples for a month: $31
Cost to hire a worker: $320
Cost to fire a worker: $720
Productivity of labor: 5 tons of apples per month per worker
You start the year witht he same number of workers as you ended the last year (which was similar to this year), and will keep 130 tons of safety stock on hand for the level production scenario. Comment also on the safety stock and your readons for having it.
Related Book For
Canadian Organizational Behaviour
ISBN: 978-0070401877
8th Canadian Edition
Authors: Steven Lattimore McShane, Sandra Steen
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