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
Each worker can make tablesweek
Hiring cost $worker
Unemployment cost $worker
Standard production cost $ table
Overtime $ in labor costs and each labor can produce table per week using
overtime.
Inventory cost $tablemonth No tables in inventory when starting
If company cannot supply customer, it will cost $ in lost profit.
Assume 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
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