aishat, Operation Management

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A company has the following forecast demand for the next five months: 1,600, 2,400, 3,200, 2,800, and 2,400. The following information is also available.

current work force = 15

workdays/month = 20

labor hours/unit = 2

working time/day = 8

hiring cost/worker = $100

layoff cost/worker = $50

Inventory, stockouts, overtime, and subcontracting are not allowed. Only hiring and layoff are allowed to respond to fluctuations in demand. Determine the total cost of hiring and layoff during the five-month period.

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