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Question: Togo makes riding lawn mowers and tractors. The company's expected quarterly demand is given below in the chart. The company will have 300 mowers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Below is other critical data:
Production cost per unit = $200
Inventory carrying cost per month per unit = $60 (based on ending month inventory)
Hiring cost per worker = $500
Firing cost per worker = $750
Beginning number of workers = 40
Each worker can produce 100 units per quarter.
Complete the tables and calculate the cost of the two plans.
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