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)

keosha answered 6 months ago
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