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Question A manufacturing company has the following demand to meet: Month Demand (Cases) March 28,000 April 30,000 May 44,000 June 44,000 July 54,000 August
Question A manufacturing company has the following demand to meet: Month Demand (Cases) March 28,000 April 30,000 May 44,000 June 44,000 July 54,000 August 40,000 Beginning Inventory =4000 cases No. of Beginning workers = 15 Average Monthly Output per worker = 2000 cases per month Cost of Production = $0.95 Inventory Holding Cost = $0.40 per case per month Hiring cost $2000 per worker Layoff cost $4500 per worker a) Develop the both the chase & Level production plans using changing inventory levels. (16 marks) b) Indicate which is the preferred plan? You must give reason(s) c) (4 marks) Briefly, what impact on quality do you think both strategies might have on quality? (5 marks)
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