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(b) (i) (ii) Modern Furniture Ltd has forecasted the sales of its tables for the 12 months of 2021. The data are indicated in

 

(b) (i) (ii) Modern Furniture Ltd has forecasted the sales of its tables for the 12 months of 2021. The data are indicated in the table below. The organization currently employs 50 employees. For planning purposes, each employee is capable of making 200 units a month. The cost of hiring an additional employee is Rs11 000 per employee and the cost of making an employee redundant is Rs3000. A storage charge of Rs 400 per unit is made for inventory on hand at the end of each month, for warehousing purpose. (Ignore the salary paid to the workers) Month Jan Feb Mar Apr May Jun Jly Aug Sep Oct Nov Dec Demand Forecast (Units) 6500 6300 6100 6900 6100 6400 6700 6300 6100 6900 6300 6200 Develop a production schedule using a level production strategy. Calculate the cost for implementing this production schedule. (10 marks) (5 marks)

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Step 13 The total demand for 12 months D6500 6300 6100 6900 61006400 6700 63006100 6900 6300 6200 76... blur-text-image

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