Question The following table shows the monthly demand and beginning inventory of

Question

Question The following table shows the monthly demand and beginning inventory of a company. A worker is capable of producing 50 units per month and the company wants to have zero inventory at the end of month 6. What months would there be under 50 required workers if it follows a chase production strategy? Time Running: H Attempt due: Jun 22 a 1 Hour, 26 Minut Month 4 emand 1000 1500 2500 3000 3000 1000 Beg. Inv. Regular Production Ending Inv Net Requirements Required Workers 1, 2, 6 1, 2, 3, 4, 5, 6 2, 4, 6 2, 3, 4, 5

Explanation / Answer

As it is a chase production strategy, production will be according to demand so that the inventory at month end is 0. Considering that in mind we will solve the problem in both quesstions

Ans for Q1 1,2,6

Production = Demand

Ans for Q2 10

Production = Demand

So, difference is 60-50 = 10

Month Production Workers 1 1000 1000/50=20 2 1500 1500/50=30 3 2500 2500/50=50 4 3000 3000/50=60 5 3000 3000/50=60 6 1000 1000/50=20

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