Question

A company is seeing an unexpected decline in the forecasted demand for a product to an average of 15,000 units per month. There are currently 50 employees in the production department, each producing an average of 410 units per month. Current inventory is 11,290 units. Executive management desires to maintain current average production levels per employee and will reassess this decision in six months. How many employees will become unemployed if management decides to lay off production employee?

18

26

29

32

Answer 1

The Beginning inventory is 11290

So initial month the required production = 15000-11290=3710 units

All the other 5 months the average production is 15000

total production required = 15000*5+3710= 78710

Aggregate production = 78710

Per month required production = 78710/6= 13118.333

One employee produces 410 units so employee required on an average = 13118.333/410= 31.999=32 employees

So, the employees those will be laid off = 50-32=18

So the answer is option A i.e. 18

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