April 2016
Intermediate to advanced
430 pages
16h 33m
English
Content preview from RFID and Auto-ID in Planning and Logistics
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226 RFID and Auto-ID in Planning and Logistics
To evaluate cost trade-offs, three costs are considered: cost of hiring workers, cost of firing
workers, and cost of holding inventory:
• C
H
= Cost of hiring one worker = $500
• C
F
= Cost of firing one worker = $1000
• C
I
= Cost of holding one unit of inventory for 1 month = $80
To translate aggregate production in units to workforce levels, K will be evaluated as
• K = Number of aggregate units produced by one worker in 1 day
In the past, the plant manager observed the firm produced 245 RFID readers over 22 working days,
with the workforce level constant at 76 workers. On average, the production rate ...
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