Question

The table below shows the forecast for Company X over the next four quarters. Management has decided to use a level capacity strategy with 20 employees. The company works 1 eight hour shift a day, and workers are given 2 paid 15 minute breaks. It takes 2 hours to make a unit and the company works 60 days in a quarter. What would be the production plan in every quarter under this plan? (Round any fractional output to the nearest whole number.)

Period	1	2	3	4
Forecast	2000	3000	6000	4000
Hours Required
Workers Required
Workers Used

Answer 1

Please refer to the following calculation snapshots:

Hours Required = Forecast units * hours per unit

Hours Required = Forecast units * 2

Workers Required = Hours Required / (Total work time per worker)

Total work time per worker in a quarter = 60 days * 8 hour-shift per day

Total work time per worker in a quarter = 480

Workers Required = Hours Required / 480

Each worker gets 2 15-minute breaks daily. Hence, for each 8-hour shift, a worker works only 7.5 hours

Workers used = Workers Required * 8 / 7.5

Kindly up-vote this answer if it was helpful to you. This will help me in maintaining the quality of my answers. Do reach out to me in case of any queries. Thank you.

Happy Learning!