Production Scheduling Given situation as of January 1: Number of shifts per work

Question

Production Scheduling

Given situation as of January 1:

Number of shifts per work day = 1

Scheduled production/8.5 hour shift = __________* cases of 24 cans

Rated speed of production line = 1200 cans per minute

Scheduled number of working days/month = 22

Beginning inventory on Jan 1 = 88,333 cases

Sales forecast for January = 600,000 cases

Sales forecast for February = 580,000 cases

Sales forecast for March = 500,000 cases

* You must calculate the number and fill the blank above.

Using the information given above, answer these questions.

1. What is the projected finished goods inventory at end of March?

2. Will this schedule meet the forecasted demand for each of the 3 months? If not, which month(s) will be short and by how many cases?

3. If we experience 3.7% downtime, what will the March ending inventory be?

4. Do you suggest we change the production schedule? How?

Explanation / Answer

Scheduled production/8.5 hour shift = 25500 cases of 24 cans

1) Goods at the end of every month:

2) The schedule will meet the forecast easily

3).if there is a downtime of 3.7 % in every month the inventory at the end of each month can be :

4). If we are working at 100% efficiency there are some inventory left, so it is not required to work for 22 days every month. We can plan for the production schedule and work accordingly. So that cost can be lower.

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