Please answer me using excel. You\'ve chosen Plain White Tees to produce all of
ID: 452198 • Letter: P
Question
Please answer me using excel.
You've chosen Plain White Tees to produce all of the t-shirts sold at the ice cream parlor. Last week Plain White Tees' production manager, Tom, mentioned that although his company uses both the chase and stable workforce production strategies, he is unhappy with the hiring and firing that occurs under the chase plan and the variable work hours of the stable plan. You suggest a level production plan and offer to help Tom develop one for the next four months. Given the following demand forecasts, help Tom develop a pure level output plan (this means that you produce the same number of t-shirts each month) that specifies the level of production needed to avoid back orders during any period and to keep ending inventory at a minimum. Beginning inventory is 80 units.Explanation / Answer
January 1800 February 1725 March 2650 April 900 Total (A) 7075 Opening (B) 60 Production Required (C = A-B) 7015 Amount of Production Required for Level Production with back orders (C/4) 1754 However backorder is not allowed, so additional production of 853 of needs to be done in first 3 months Hence, increase in production each month = 853/3 285 (Due to rounding off, 285 units to be produced) Month January February March April Demand (A) 1800 1725 2650 900 Production (B) 2039 2039 2039 2039 Opening Balance ( C = Last period Closing) 60 299 613 2 Closing Balance (D = C + B - A) 299 613 2 1141