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Problem 2 - 10 points. (Questions a and b=5 points each) Ella's kitchen is in the process of planning labor force requirements and production levels
Problem 2 - 10 points. (Questions a and b=5 points each) Ella's kitchen is in the process of planning labor force requirements and production levels for the next four quarters for the line of pureed fruit. The marketing department has provided production with the following forecasts of demand over the next year. Demand Forecast (in thousands of cartons) Quarter 380 630 220 160 Assume there are currently 280 employees with the company. Employees are hired for at least one full quarter. Hiring costs are $1200 per employee and firing costs are $2500 per employee. Inventory costs are $1 per carton per quarter. It is estimated that one worker produces 1000 cartons of pureed fruit each quarter. Assume there is currently 80,000 cartons of product in inventory and the manager would like to end the year with an inventory of 20,000. a) Assuming that you will be using the constant workforce strategy to determine the production plan, what is the minimum number of workers required for this plan? b) Using the answer determined in part a, determine the minimum constant workforce plan and the cost of the plan. Populate the result in the table below. No. of No. of Number Number No. units per Units Cumulative Cumulative Quarter Workers hired fired worker produced production demand Ending Inv
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