9. The VP of manufacturing for the N. L. Hyer Company is ready to decide on her sales and operations plan for next year. The firm’s single product

(known throughout the adult puzzle trade as “Hyer’s Hexagon”) is “red hot,” according to the VP of marketing, so she insists that back orders are not acceptable next year. Because the United Puzzlemakers Union is trying to organize the plant, the manufacturing VP decided the number of employees must remain constant (i.e., level) throughout all four quarters.

Pertinent information is as follows:

a. What daily production rate and number of employees will be required?

b. How many units will be in inventory at the end of quarter 4?

Transcribed Image Text:

Quarter Production Days Sales Plan 123 + 60 12,000 2 3 58 61 70 13,000 13,590 9,000 4 Beginning inventory = 1,000 units Regular time output rate = 10 units/day employee