Chapter $6,$ Question $3$

Given the following production plan, use a $($a$)$ chase production strategy and $($b$)$ level production strategy to compute the monthly production, ending inventory$/($backlog$)$ and workforce levels. A worker can produce $50$ units per month. Assume that the beginning inventory in January is $500$ units, and the firm desires to have $200$ units of inventory at the end of June.

Month

JAN

FEB

MAR

APR

MAY

JUN

Demand

$2000$

$3000$

$5000$

$6000$

$6000$

$2000$

Production

Ending Inventory

Workforce

Q$1$a

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In a chase production strategy, what is the monthly production in February?

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$3000$

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Q$1$b

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In a chase production strategy, what is the ending inventory$/$backlog in May?

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$0$

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Q$1$c

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In a chase production strategy, what is the size of the workforce in June?

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$44$

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Q$1$d

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In a level production strategy, what is monthly production in June?

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$3950$

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Q$1$e

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In a level production strategy, what is the inventory$/$backlog in May $($enter backlog as a negative number$)?$

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$-1750$

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Q$1$f

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In a level production strategy, what is the workforce required in March?

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$79$

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