Question: 4. (35 pts) Consider the following resource decision problem. You have to satisfy the forecasted demand for the 6 time periods given below for the
4. (35 pts) Consider the following resource decision problem. You have to satisfy the forecasted demand for the 6 time periods given below for the Red Raider Assembly. There is an initial inventory of 15 Red Raider Assemblies. Red Raider Assemblies are put together by workers who produce 7 assemblies in each time period. Workers are paid \$w for each time period. The holding cost for a Red Raider Assembly is $5 per time period for one assembly. While your company can forecast the demand for Red Raider assemblies pretty well, the company wants to keep a buffer of 15 Red Raider Assemblies to protect against demand variations that exceed the forecast. a. If you use a level workforce strategy, what number of workers would you want to use in each period? Why? b. Using the number of workers you recommend in part a, what would be your total inventory holding costs over the 6 periods? What would be your total labor costs? c. If you use a chase strategy, what number of workers would you want to use in each period? Why? d. Using the number of workers you recommend in part c, what would be your total inventory holding costs over the 6 periods? What would be your total labor costs? e. Would you recommend using the level workforce or chase strategy? Why
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