OM Study2 (#2, 4)

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2. Suppose that on Dec. 21 the long range weather forecast was released by the weather service and more snow than normal is predicted. As a result, the Marketing Department raises their forecast for Qtr. I sales of blowers from 11,000 to 13,000 units. Develop the following alternative plans, given:
a) beginning inventory of 400 mowers and 600 blowers,
b) ending inventory and backorders for Qtr. IV must be 0, and
c) each quarter must have the same level total output rate.

<중 략>

4. On Dec. 22 the V.P. Finance informs you that the cost of capital will be extremely high next year and asks you to develop a chase strategy based plan which keeps zero ending inventory at each quarter. The V.P. Manufacturing says he realizes this type of strategy will require him to abandon his level strategy and to vary the total output rate from one quarter to another. Finally, the Personnel Manager informs you that, due to end of year retirements, only 36 (not 44) full-time employees (FTEs) will be on the payroll as of Jan. 2. Further, due to an expected shortage of labor in the area, she doubts that any additional FTEs could be hired next year.

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