Flexibility to change our workforce on monthly basis

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Reference no: EM133865006

Question

In a chase strategy, we have a flexibility to change our workforce on monthly basis. Our aim is to reduce the end inventory to Zero level. For month June - October Workforce = (Demand - Beginning Inventory)/35 Production = 35* Workforce Ending Inventory = Production Beginning Inventory - Demand Beginning Inventory = Ending Inventory of last month For November Workforce = (Demand - Beginning Inventory Desired End Inventory (150))/35 Our desired end inventory is 150 for that we required 44.28 worker, which is not possible so we need to level our workforce at 45 so our production for November will be 1575 and End Inventory = 1575 - 1400 = 175

Reference no: EM133865006

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