Question: The following is the projected demand for the Mesa Table Company and the various cost details: No . of workers on line - 2 0

The following is the projected demand for the Mesa Table Company and the various
cost details:
No. of workers on line -20
Each worker can make 10 tables/week
Hiring cost - $2000/worker
Unemployment cost - $3000/worker
Standard production cost - $500 table
Overtime - $40 in labor costs and each labor can produce 2 table per week using
overtime.
Inventory cost - $10/table/month (No tables in inventory when starting)
8. If company cannot supply customer, it will cost $200 in lost profit.
(Assume 4 weeks in a month)
Compute the S&OP of this production line by using Level, Chase, and Combination
approach.
Compare the costs in each of the case and state the optimum approach
The number workers should not go below 20
 The following is the projected demand for the Mesa Table Company

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