Question: Monthly demand Data and constraints obtained from a production facility which produces pairs of shoes are as shown in the tables and list below. a)

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Monthly demand Data and constraints obtained from a production facility which produces pairs of shoes are as shown in the tables and list below. a) Develop a level production plan. (10 marks) b) Develop a chase production plan (10 marks) c) Advise the management of the facility as to which plan is the better plan and why this is so (5 marks) Note the plans should be developed and shown in the designated tables3 and 4 below. List 1 Constraints 1 2 3 4 5 6 7 8 9 10 11 no overtime no subcontracting regular cost of production = $90/pair backorder cost of production =$14/pair hiring cost= $130/pair production per employee =500pairs/month firing cost = $500/pair workforce=32 workers prior to the start of the production cycle overtime cost of production $80/pair inventory carrying and holding cost $3/pair hiring and firing is allowed level production method month demand Reg prdn inventory Back order Hired fired # of workers 15000 14000 23000 January February March April May totals 13000 16000 Table 3 Chase production method month demand Reg prdn # of workers required # of workers available # of workers hired # of workers fired January February March April May totals 15000 14000 23000 13000 16000 Table 4 ANSWER TO 2C SHOULD BE PLACED IN SPACE BELOW

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