Answered: ity Sod is a small business that sells…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Question

City Sod is a small business that sells and lays sod (rolled strips of grass). The owner has devised a forecasting procedure based on demand history from previous years plus projection of demand in recent weeks. The forecast for the next six weeks, in labor hours of sod laying, is

850 870 950 910 970 870

CmTently, City Sod has a staff of sod layers consisting of five crew chiefs and 15 laborers. A crew chief lays sod along with the laborers, but also directs the crew. The owner has decided on the following staffing policies:

A two-week backlog will be accmnulated before adding staff.

Plans are based on a 40 hour work week; overtime is used only to absorb weather or other delays and employee absence or resignations.

The ideal crew size is one crew chief and four laborers.

Devise a hiring plan for the first three weeks. In your answer, assmne a current backlog of 1,480 labor hours of sod-laying orders. Does City Sod follow a chase-demand or level-capacity strategy of production planning? Explain.

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