How many units will be in inventory


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Q: Sohn Aerospace is looking at another product line. Their new drone helicopter is popular and they would like to sell what they can with no backorders. The CEO does not wish to hire and fire people during the year so he wants you hire a constant number of employees and maintain that size workforce. Review the attached file for the table of data and then answer the following questions:

1. What daily production rate and number of employees will be necessary?

2. How many units will be in inventory at the end of each quarter?

Quarter Production days Demand forecast
1 60 12000
2 58 13000
3 61 13590
4 70 9000
beginning inventory = 1,000 units
Regular time output rate = 10 units/day employee

 

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Operation Management: How many units will be in inventory
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