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I need help with just part a. I know we need to find production requirements. and Pt=Forecast+Minimum Inventory- Beginning inventory. So for november: 11000+1000-1600=10400 But
I need help with just part a. I know we need to find production requirements. and Pt=Forecast+Minimum Inventory- Beginning inventory.
So for november: 11000+1000-1600=10400
But how do i find beginning inventory for december?
( 30 points) Enchanted Scents produces cases of 9 different types of essential oils that are sent to different retailers. Past experience shows that a worker can produce 8 cases per day. The average cost of one case is $145 and Enchanted Scents uses a holding cost rate of 21%. Enchanted Scents anticipates the total forecasted demand across all of the essential oil types to be the values shown in the forecasted demand data column in the table below for the months of November to March of the coming year. The table also shows the number of working days per month. Enchanted Scents has 1600 cases of essential oils in inventory at the end of October. Enchanted Scents also wants to have a minimum amount of inventory on hand in case demand differs from the forecast: 1000 units in November, 800 in December. 1200 in January, 1200 in February, and 1600 in March. a. If Enchanted Scents want to use a constant workforce strategy for the months of November to March how many workers would you recommend that they employ? Why? b. Given your answer to part (a), what month would you expect to have the lowest inventory level at the end of the month? Why? c. Given your answer to part (a), what month would you expect to have the highest inventory level at the end of the month? WhyStep by Step Solution
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