Solution to Assignment 3

Total costinventory costhiring cost in the beginning

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Unformatted text preview: nning =10*(2126+400)+600*(35-33)=26460 Zero Inventory Strategy: Number of Number Number Number Period Demand July 750 32 24 August 1100 32 34 September 950 32 30 October 900 32 28 November 1000 32 31 December 1550 32 49 units/wkr of wkrs of hires of fires Total 11 Prod. Cum D Cum Prod. Inv. 768 750 768 18 1088 1850 1856 6 4 960 2800 2816 16 2 896 3700 3712 12 3 992 4700 4704 4 18 1568 6250 6272 22 10 31 17 78 For Aug, 1100/32=34.375, 0.375*32=12<18 (left inventory from Jul), so we only need 34 workers, and inventory left from Jul will cove...
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