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Mr. Beanstring’s Bakery makes a variety of breads. Based on the orders received and forecasts of buying habits, it is estimated that the demand for the next 4 months is 12500, 4800, 8700 and 9800 loafs of bread. During a 25-day period when there were 15 workers, the company produced 11,250 loafs. Assume that the number of workdays over the 4 months are, respectively, 28, 26, 23 and 18. There are currently 10 workers employed, and there is no starting inventory of bread.
a. What is the minimum constant workforce required to meet demand over the next 4 months? Assuming that c_I= 50 cents per loaf per month, c_H=$300 and c_F=$500, what is the cost for this plan?
b. What is the zero inventory production schedule required to meet demand over the next 4 months? Assuming that c_I= 50 cents per loaf per month, c_H=$300 and c_F=$500, what is the cost for this plan?
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