PLEASE SHOW ALL WORK A company has the following forecast demand for the next fi

Question

PLEASE SHOW ALL WORK A company has the following forecast demand for the next five months: 1,600, 2,400, 3,200, 2,800, and 2,400. The following information is also available. current work force 15 workdays/month- 20 labor hours/unit-2 working time/day 8 hiring cost/worker = $ 100 layoff cost/worker = $50 Inventory, stockouts, overtime, and subcontracting are not allowed. Only hiring and layoff are allowed to respond to fluctuations in demand. The total cost of hiring and layoff during the five-month period will be: a) $1,500 b) $3,750 c) $2,250 d) $3,000 e) None of the above

Explanation / Answer

Answer:

First month hired =5 as total 15+5=20 workers required

Hiring cost 1st month=100X10=1000

So units required =1600=20 workers x 20 workdays X 4 units per worker per day(8hour=4units)

2nd month =2400 no more hiring required

3rd month 10 more hired to get 3200 units as

so third month hiring cost =10 x50=500

Units required =3200=40 workers x 20 workdays X 4 units per worker per day(8hour=4units)

4th month=2800 so only 30 men required so 10 layoff

layoff cost =10 x 100=1000

5th month=2400 so only 20 men required so 10 layoff

layoff cost =10 x 100=1000

total hiring andd layoff cost =500+500+1000+1000=3000 ANSWER

3000$ ANSWER

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