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Calculate the number of worker required for level production

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Reference no: EM132549506

Question 1: A factory wishes to send all their workers on a holiday at the second half of August and maintain the machinery. Therefore, the whole manufacturing is structured to support this idea, which is build up stock until August and supply most of the orders of Augusts from inventory. The factory has accumulated an inventory of 15000 at the end of April. Starting from May the company would like to review its production plan. The working days and related forecasts for May, June, July and August is given in the table below. Using these data, calculate the number of workers required for level production and resulting month-end inventories. Each worker can produce 12 units per day and the desired ending inventory is 7000.

                                                 May            June            July                   August          

Total Working Days                 20               24               23              12

Forecast Demand                  27120        32250            35420           41190

Planned Production

Planned Inventory                 15000                     7000

Reference no: EM132549506

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