Assume that Livingstin will have nothing in inventory at the end of July. Living

Question

Assume that Livingstin will have nothing in inventory at the end of July. Livingston employs 1,000 production assembly workers and it takes one production assembly worker 5 mintes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 150 hours of assembly time a month without requiring overtime pay.

Question: Livingston wants to complete this plan without working any overtime in assembly. How many additional workers does Livingston need to hire, in order to accomplish this? When should they be hired?

August September October November December Forcasted Demand (units of finished goods): 1,500,000 1,500,000 2,000,000 3,500,000 500,000 Production Plan 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Explanation / Answer

Answer:

Number of workers currently engaged = 1000

Number of worker hours per month = 1000 x 150 = 150000 worker hours or 150000 x 60 = 9,000,000 worker minutes

Number of units that can be produced with 9,000,000 worker minutes = 9,000,000 / 5 =1,800,000 units

Therefore, if Livingston want to stick to his production plan then he will be required to hire additional workers immediately for 200,000 units. (2,000,000 - 1,800,000)

However, if he adjust his production plan with the forecasted demand then he will require additional worker to satisfy October demand.

Further, if he plans to utilise his full worker capacity then he will require additional workers to satisfy demand of only the month of November.

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.