Question

The total cost, excluding normal time labor costs, for Plan A =

$105,000105,000.

(Enter your response as a whole number.)

Plan B: Vary the workforce to produce the prior month's demand. The firm produced

1 comma 3001,300

units in June. The cost of hiring additional workers is

$3030

per unit produced. The cost of layoffs is

$6060

per unit cut back.

(Enter

all responses as whole numbers.)

Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of

1 comma 3001,300

in July to

12001200

in August requires a layoff (and related costs) of

100100

units in August).

	Month	Demand	Production	Hire (Units)	Layoff (Units)	Ending Inventory	Stockouts (Units)
1	July	12001200	nothing	nothing	nothing	nothing	nothing
2	August	13001300	nothing	nothing	nothing	nothing	nothing
3	September	12001200	nothing	nothing	nothing	nothing	nothing
4	October	17001700	nothing	nothing	nothing	nothing	nothing
5	November	16501650	nothing	nothing	nothing	nothing	nothing
6	December	16501650	nothing	nothing	nothing	nothing	nothing

The total hiring cost =

$nothing.

(Enter your response as a whole number.)

The total layoff cost =

$nothing.

(Enter your response as a whole number.)

The total inventory carrying cost =

$nothing.

(Enter your response as a whole number.)

The total stockout cost =

$nothing.

(Enter your response as a whole number.)

The total cost, excluding normal time labor costs, for Plan B =

$nothing.

(Enter your response as a whole number.)

Answer 1

Formula:

D4 =C3

E4 =MAX(0,D4-D3)

F4 =MAX(0,D3-D4)

G4 =MAX(0,G3+D4-C4-H3)

H4 =MAX(0,-G3-D4+C4+H3)

copy these formulas down to row 9

F13 =E10*E11

F14 =F10*F11

F15 =G10*G11

F16 =H10*H11

F17 =SUM(F13:F16)