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Unformatted text preview: With an output of 150 and each worker producing 10 units, there will be 150/10 = 15 workers It is more cost effective to use the inventory system. The adjustment costs for hiring/laying off is 18,800 while the cost of using the inventory system is 16800. The inventory system present of (18,800-16,800)= $2,000 savings. g: $600, Laying off: $500 f employees ts a savings...
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This note was uploaded on 04/11/2009 for the course ARE 157 taught by Professor Whitney during the Fall '08 term at UC Davis.
- Fall '08