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Chase strategy

Level strategy

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. Net Predicted Net Cumulative Month Demand Demand January 780 780 February 640 1,420 March 900 2,320 April 1,200 3,520 May 2,000 5,520 June 2,000 7,520 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