Question: Densepack is to plan workforce and production levels for the six-month period January to June. The firm produces a line of disk drives for mainframe

Densepack is to plan workforce and production

Densepack is to plan workforce and production levels for the six-month period January to June. The firm produces a line of disk drives for mainframe computers that are plug compatible with several computers produced by major manufacturers. Forecast demands over the next six months for a particular line of drives produced in the Milpitas, California, plant are 1,280, 640, 900, 1,200, 2,000, and 1,400 There are currently (end of December) 300 workers employed in the Milpitas plant. Ending inventory in December is expected to be 500 units, and the firm would like to have 600 units on hand at the end of June. There are only three costs to be considered: cost of hiring workers, cost of firing workers, and cost of holding inventory. Define Cost of hiring one worker = $500, Cost of firing one worker = $1,000, CH Cost of holding one unit of inventory for one month = $80. In the past, the plant manager observed that over 22 working days, with the workforce level constant at 76 workers, the firm produced 245 disk drives. The number of working days per month are 20, 24, 18, 26, 22, and 15 for January to June, respectively. Apply Chase (Zero inventory) and Level (Constant workforce) strategies to this problem and compare the related costs. CH = CF =

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