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提问人：网友rdbaby
发布时间：2022-01-07
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Consider the data for Lavare in Exercise 1. we now...
Consider the data for Lavare in Exercise 1. we now assume that Lavare can change the size of the workforce by laying off or hiring employees. Hiring a new employee incurs a cost of $100; laying off an employee incurs a layoff cost of $2,000. a. What is the optimal production plan for the year if we assume no promotions？ What is the annual profit with this plan？ What is the cost of this plan？ b. Is it better to promote in April or July？ How much increase in profit can be achieved as a result？ c. If the holding cost for sinks increases from $3 per month to $5 per month, does the decision of the timing of promotion change？ Why or why not？
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