Question
In: Operations Management
Given the following production plan, compute the monthly production, ending inventory/(backlog) and workforce levels using a...
Given the following production plan, compute the monthly production, ending inventory/(backlog) and workforce levels using a chase production strategy. Assume that a worker can produce 30 units per month and the beginning inventory in June is 400 units, and the firm desires to have 200 units of inventory at the end of November.
|
Month |
June |
Jul |
Aug |
Sep |
Oct |
Nov |
|
Demand |
1500 |
2800 |
4200 |
3600 |
2350 |
1400 |
|
Production |
||||||
|
Ending Inventory |
||||||
|
Workforce |
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Solutions
Expert Solution
The table as per Chase production strategy shall be as follows:
| Month | June | July | Aug | Sep | Oct | Nov |
| Demand | 1500 | 2800 | 4200 | 3600 | 2350 | 1400 |
| Production | 1100 | 2800 | 4200 | 3600 | 2350 | 1600 |
| Ending Inventory | 0 | 0 | 0 | 0 | 0 | 200 |
| Workforce | 37 | 94 | 140 | 120 | 79 | 54 |
June:
Demand = 1500
400 units are already in stock, so production of 1500 - 400 = 1100 units is required
Ending Inventory = 0
Workforce required = 1100 / 30 = 36.67 = 37 (Rounding off to next whole number)
July:
Demand = 2800
Starting Inventory = 0
So, Production of 2800 units is required.
Ending Inventory = 0
Workforce required = 2800 / 30 = 93.33 = 94 (Rounding off to next whole number)
August:
Demand = 4200
Starting Inventory = 0
So, Production of 4200 units is required
Ending Inventory = 0
Workforce required = 4200 / 30 = 140
September:
Demand = 3600
Starting Inventory = 0
So, Production of 3600 units is required.
Ending Inventory = 0
Workforce required = 3600 / 30 = 120
October:
Demand = 2350
Starting Inventory = 0
So, Production of 2350 units is required
Ending Inventory = 0
Workforce required = 2350 / 30 = 78.33 = 79 (Rounding off to next whole number)
November:
Demand = 1400
Starting Inventory = 0
End of Month Inventory required = 200
So, Total Demand = 1400 + 200 = 1600
Therefore, Production of 1600 units is required.
Workforce required = 1600 / 30 = 53.33 = 54 (Rounding off to next whole number)
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