Question
Table 2: Jul Aug Sep Oct Demand (Units) 600 700 2400 1900 Nov 1700 800 Dec Cumulative Demand (Units) Production per Period Cumulative Production
Table 2: Jul Aug Sep Oct Demand (Units) 600 700 2400 1900 Nov 1700 800 Dec Cumulative Demand (Units) Production per Period Cumulative Production Cumulative Demand minus Cumulative Production Ending Inventory Back Orders (b) Comment on your results and explain whether at this stage, you consider a Level plan is a suitable approach for this particular business. Your comment should include reference to a calculated 'fill rate'. [5 marks] (c) Using Table 2 again, this time complete for a Chase production plan. [3 marks] (d) Explain whether a Level or Chase plan is more suitable for the demand pattern experienced by this particular business, which incidentally relies on highly skilled workers in the production process. Assume a starting workforce of 7 and that fractional workers are permissible. You should support your answer with numerical data derived from Table 3. In comparing the costs, state any other assumptions made. Table 3: [11 marks] Units produced per worker per period 200 Hiring cost per worker 450 Firing cost per worker 150 Inventory 7.50 Holding Cost per unit per period Shortage Cost 10.50 per unit per period
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