# Question: solve the following two problems submit three outputs for each...

###### Question details

Solve the following two problems. Submit three outputs for each:
solutions for chase, level and a mixed strategy. This assignment is
due on Tuesday, January 29^{th} in class.

- The XYZ manufacturing company determined the demand forecast for one of its family of products as:

Month 1 2 3 4 5 6 7 8 9

Demand 100 200 250 100 50 150 250 100 150

The wages are $2000 per month per worker. Each worker can produce 5 units per month. The hiring cost is $1000 per worker while the layoff cost is $500 per worker. It costs $50 to carry one unit for one month. No backorders and no lost sales are allowed. Currently the company employs 15 workers.

- Determine the total cost of the chase strategy
- Determine the total cost of the level strategy
- Use a mixed-strategy to lower the total cost.

- A supermarket determined the number of cashiers needed for the next 7 months as:

month 1 2 3 4 5 6 7

Cashiers 5 3 2 6 9 8 10

The supermarket wants to employ full-time employees as cashiers. Wages are $2500 per cashier per month. Hiring cost is $500 per cashier and firing cost is $1000 per cashier. A cashier can work overtime up to 25% of the regular time. The overtime pay is %150 of the regular wages. The supermarket has just fired all cashiers.

- Determine the total cost of the chase strategy
- Determine the total cost of the level strategy
- Use a mixed-strategy to lower the total cost.