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A Company policy calls for keeping safety-stock equal to 25% the forecasted demand for that month. The company currently has a work force of 12 people. It takes a worker 3 hours to produce a unit. Assume 8 work hours per day and 20 work days per week.

Demand Data

Jan. Feb. March

Beg. Inventory 200

Forecast demand 500 300 600

a.Determine the total production requirement for the month of February.

b.Determine the beginning inventory for the month of March.

c.Determine the total number of units current work force of 12 workers can produce in a month.

d. Determine the total number of workers needed to produce 960 units in a month.

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