Question 1: You are asked to make a sales and operation plan for the next year.

Question

Question 1:

You are asked to make a sales and operation plan for the next year. The demand forecasts for the next four quarters are 3,000, 2,400, 4,200, and 3,600 units, respectively. The production rate is 75 units per quarter per employee. There is no initial inventory or safety stock requirement. Using a chase strategy, how many employees are needed in quarter 1?

A. 30, B. 32, C. 36, D. 40, E. 44

Question 2: You are asked to make a sales and operation plan for the next year. The demand forecasts for the next four quarters are 3,000, 2,400, 4,200, and 3,600 units, respectively. The production rate is 75 units per quarter per employee. There is no initial inventory or safety stock requirement. Using a chase strategy, what is the inventory/backorder at the end of quarter 2?

A. -500, B. 0, C. 200, D. 500, E. 1200

Question 3.

You are asked to make a sales and operation plan for the next year. The demand forecasts for the next four quarters are 3,000, 2,400, 4,200, and 3,600 units, respectively. The production rate is 75 units per quarter per employee. There is no initial inventory or safety stock requirement. Using a level strategy, how many employees are constantly needed in the next year?

A. 30, B. 32, C.36, D.40, E. 44

Explanation / Answer

Answering the first question as per Chegg policy

Production level = 75 units per Quarter per employee

Demand forecast for Quarter 1 = 3000

Demand forecast for Quarter 2 = 2400

Demand forecast for Quarter 3 = 4200

Demand forecast for Quarter 4 = 3600

Since there is no initial inventory, as per Chase strategy (having only the required level), the employees required for quarter 1 are

= 3000 / 75

= 40 Employees

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