you are asked to make a sales and operation plan for the next year a level strat

Question

you are asked to make a sales and operation plan for the next year a level strategy. The demand forecasts for the next four quarters are 12,000 , 8,000, 11,000 ,and 14,000 units, respectively. the production rate is 10 units per day per employee. Assume that there are 75 working days in each quarter. Both the initial inventory of the first quarter and the ending inventory target at the end of quarter 4 are 300 units.

1. How many employees would be needed?

A. 15

B. 20

C. 25

D. 30

2. What is the inventory/backorder at the end of quarter 3?

A. -450

B. 2000

C. 3050

D. -1040

Explanation / Answer

1.B.20 employees would be needed.

2.B 2000 is the inventory/backorder at the end of quarter 3.

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