Wacky Mac is a new pasta product produced in Romania. The demand for pasta is surprisingly seasonal
Question:
Wacky Mac is a new pasta product produced in Romania. The demand for pasta is surprisingly seasonal and WM needs help designing an economic production plan. The beginning workforce is 50 workers. Each worker can produce 250 units per quarter. The cost of hiring, firing, inventory and regular production are $1000, $1500, $15, and $20 respectively. Demand must be met and no overtime or subcontracting are allowed. Quarterly demand is 25,000; 50,000; 35,000; and 60,000 respectively. If a chase demand strategy is used then the number of workers fired at the start of quarter 3 would be____
a. If a chase demand strategy is used then the total cost of the plan would be_____
b. If a level production strategy is used then the required output per quarter would be___
c. If a level production strategy is used then the inventory at the end of quarter 3 would be___
d. If a level production strategy is used then the total cost of the plan would be___
Qtr | Demand |
1 | 25,000 |
2 | 50,000 |
3 | 35,000 |
4 | 60,000 |
Statistics for Business Decision Making and Analysis
ISBN: 978-0321890269
2nd edition
Authors: Robert Stine, Dean Foster