In their efforts to plan for production, the Operations Planning Group at the Akon Manufacturing Company collected the following data about its operations: Number of employees at the start of the first quarter 126 Cost per employee $3,500 per quarter Number of units produced per employee 100 per quarter Over-time Not allowed Demand for the first quarter 12,800 units Demand for the second quarter 12,500 units Demand for the third quarter 13,100 units Demand for the fourth quarter 12,100 units Cost of hiring a worker $3,000 Cost of laying off a worker $2,000 Inventory carrying cost per unit $250 per year Backorder cost per unit $125 per quarter Initial inventory 500 What is the cost of each plan? Which is the preferred Plan: Why?

In their efforts to plan for production, the Operations Planning Group at the Akon Manufacturing Company collected the following data about its operations: Number of employees at the start of the...

In their efforts to plan for production, the Operations Planning Group at the Akon Manufacturing Company collected the following data about its operations:

Number of employees at the start of the first quarter	126
Cost per employee	$3,500 per quarter
Number of units produced per employee	100 per quarter
Over-time	Not allowed
Demand for the first quarter	12,800 units
Demand for the second quarter	12,500 units
Demand for the third quarter	13,100 units
Demand for the fourth quarter	12,100 units
Cost of hiring a worker	$3,000
Cost of laying off a worker	$2,000
Inventory carrying cost per unit	$250 per year
Backorder cost per unit	$125 per quarter
Initial inventory	500

Jun 08, 2022