Steph Bercht is the operations manager for the NAZ Shirt Com…
Steph Bercht is the operations manager for the NAZ Shirt Company. In this capacity she is required to develop an aggregate plan for the next six months with the goal of meeting demand during this period. She has gathered the following data to determine the costs of the plan. Forecast Costs and other data Month Demand Previous output level (shirts) 2400 Jan 2400 Beginning inventory (units) 0 Feb 1200 Stockout cost (per shirt) $3.00 Mar 2800 Inventory holding costs (per shirt/month) $1.50 Apr 3600 Unit cost, regular time (per shirt) $16 May 3200 Subcontracting $2,000 Jun 3600 Hours per employee per day 8 Days per month 20 Labor standard (hours/shirt) 2 Cost of hiring workers (per shirt) $2.50 Cost of firing workers (per shirt) $6.25 During their busiest month of the year (Oct) they expect to produce 4400 shirts. How many employees will be required to make 4400 shirts?
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