demand and rate of production are both 1,600
units per month. The cost of hiring additional
workers is $5,000 per 100 units. The cost of
laying off workers is $7,500 per 100 units.
Evaluate this plan.
Chapter 13 problems 13.5:
Hill is now considering plan C. Beginning
inventory, stockout costs, and holding costs
are provided in Problem 13.3:
a) Plan C: Keep a stable workforce by
maintaining a constant production rate equal
to the average requirements and allow
varying inventory levels.
b) Plot the demand with a graph that also
shows average requirements. Conduct your
analysis for January through August.
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