Question: Given the following production plan, use a level production strategy to compute the monthly production, ending inventory/(backlog), net requirements and required workforce levels. A worker

Given the following production plan, use a level

Given the following production plan, use a level production strategy to compute the monthly production, ending inventory/(backlog), net requirements and required workforce levels. A worker can produce 100 units per month. Assume that the beginning inventory in January is 2200 units, and the firm desires to have 1000 units of inventory at the end of December.

Month

Jan

Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Demand 15,400 13,250 9,000 9,700 14,650 16,000 22,400 23,100 19,050 17,400 14,000 12,300

What is the amount of required workers for January through December?

What will be the monthly production level?

What is the ending inventory for September?

Can you meet the desired inventory level at the end of December with this problem?

(this is all info the problem has given)

Materials Holding costs = Marginal cost of backorder Hiring and training cost = Layoff costs Straight time labor cost/hr. $75 $15 $20 $250 $300 $18 Beginning Workers Beginning inventory = Productive hours/worker/day Paid straight hrs/day- Working days per month Units per worker per month Ending Inventory goal (December) 110 2200 7.25 8 20 100 1000

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