Question

Livingston Fabrication has created the following aggregate plan for the next five months: August September October...

Livingston Fabrication has created the following aggregate plan for the next five months:

August

September

October

November

December

Forecasting demand (units of finished goods)

1,000,000.00

1,000,000.00

2,000,000.00

4,000,000.00

1,000,000.00

Production plan

2,000,000.00

2,000,000.00

2,000,000.00

2,000,000.00

2,000,000.00

Assume that Livingston will have nothing in inventory at the end of July. Livingston employs 500 production assembly workers and it takes one production assembly worker 3 minutes to assemble one unit of finished good. (The unit is complete at that point.) Each production assembly worker can provide 160 hours of assembly time a month without requiring overtime pay.

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

Using this production plan, how many units will be in inventory at the end of October?

What will the average inventory level be each month?

Business   Operations-Management   
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