Question 2 – 25%

A lawnmower manufacturer has a demand forecast for the next 12 months as shown in the table below. The current workforce of 100 staff can produce 1,500 lawnmowers per month. Lawnmowers must be stored at ground level and need space of 2 metres x 1.5 metres each.

(a) Prepare a production plan that keeps the output level. What is the maximum warehouse space required under this plan? 

(b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10% higher than for normal hours?

Lawnmower Demand Forecast

Month	Demand Forecast ( mowers/month)
January	600
February	800
March	1,000
April	1,500
May	2,000
June	1,700
July	1,200
August	1,100
September	900
October	2,500
November	3,200
December	900