A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1 The current workforce of 100 staff can produce 1500 cases of pizzas per month. (a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan? (b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours?   Table 1 demand forecast Month                            Demand (cases per month) January                                                600 February                                              800 March                                                 1000 April                                                     1500 May                                                     2000 June                                                     1700 July                                                      1200 August                                                1100 September                                          900 October                                              2500 November                                         3200 December                                           900

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A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1

The current workforce of 100 staff can produce 1500 cases of pizzas per month.

(a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan?

(b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours?

 

Table 1 demand forecast

Month                            Demand (cases per month)

January                                                600

February                                              800

March                                                 1000

April                                                     1500

May                                                     2000

June                                                     1700

July                                                      1200

August                                                1100

September                                          900

October                                              2500

November                                         3200

December                                           900

 

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