Being able to calculate production levels and inventory costs is a key component of evaluating the fit of various options to business scenarios. For this Assignment, answer the two problems below.
Use the template provided to fill in both your answers and your work. If you don't use the template or don't show your work, you will lose points.
Problem 1
Based on the demand shown below, use a (a) chase production strategy and (b) level production strategy to compute the monthly production, ending inventory or backlog, and workforce levels. A worker can produce 50 units per month.
Beginning inventory in January is 500 units, and the firm is targeting 200 units of inventory at the end of June.
Month JAN FEB MAR APR MAY JUN
Demand 2000 3000 5000 6000 5000 2000
Production
Ending Inventory
Workforce
Problem 2
Given the following information, compute the economic order quantity, annual holding cost, annual order cost, and annual total inventory cost.
Annual requirements (R) = 50,000 units
Order cost (S) = $150 per order
Holding rate (k) = 15%
Unit cost (c) = $100 per unit
Unit 6 Assignment: Operational Issues in Supply Chain Management
2 pages,apa,sources:2