Consider a company having the following expected demand and the orders for its one of the end items. Assume that the beginning inventory of
Consider a company having the following expected demand and the orders for its one of the end items. Assume that the beginning inventory of this end item is 110 units. Company is planning to have 200 units inventory at the end of week 8 and at least 30 units inventory at the end of each week. Assume that the end item is produced in lots of 300 (or multiples of 300) units, and each unit produced can be sold to the customers or used as a service part in the maintenance-repair. Weeks 1 2 3 4 5 6 7 8 Customer forecast 150 100 120 100 150 80 70 60 Service forecast 80 110 90 60 80 140 240 100 International orders 30 90 40 80 70 120 60 40 Warehouse orders 180 180 180 180 Consider the following bill of labor at critical work centers of this company. Work Center End Item Bill of Labor (hours per unit) WC 1 5.5 WC 2 7.2 WC 3 WC 4 10.2 8.1 Using the bill of labor approach, determine the number of hours required in the work centers for each week.
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