Q2: A company has seasonal demand, with the forecast for the next 12 months as given below. Thecurrent labor force can produce 500 units per month. Each employee can produce 20 units per month,and is paid $2,000 per month. The inventory carrying cost is $50 per unit per period. It costs $100 to hireor layoff an employee. Assume 200 units of initial inventory and we would like to keep the similar levelat the end of the year.Month134789101112Demand66070084070066050060084080900700600Please use level and chase strategy to calculate the total cost of two plans (please show your work).

Given - Carrying cost= $50 unit per period Hire/layoff cost = $100 Initial Inventory = 200 units

Answered: Q2: A company has seasonal demand, with…

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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Hi, I need help solving for this Operations Management problem. Thank you.
Exercise 2: The Patio, Inc. company manufactures patio furniture. From experience, you know that demand is seasonal, that is, there is a greater amount of demand for products in specific periods throughout a year of operations. In order to properly plan its production for the next year, the furniture sales (in units) for the previous two years were reviewed: 20X3 20X4 Seasonal index Average seasonal index 20X5 First quarter (Jan-Feb-Mar) 94,700 103,500 ¿? ¿? ¿? Second Quarter (Apr-May-Jun) 116,000 126,100 ¿? ¿? ¿? Third quarter (Jul-Aug-Sep) 152,500 166,200 ¿? ¿? ¿? Fourth quarter (Oct-Nov-Dec) 101,225 90,000 ¿? ¿? ¿? Use the multiplicative seasonal method to make a forecast for the year 20X5 based on the sales force estimate, which determined that the demand for furniture will be 15% higher than in the year 20X4. Calculate the average number of units sold per station.Calculate the seasonal index.Calculate the…
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