Question: A company has these sales forecasts and labor and machine standards for its products:
|
Product
|
Quarterly Sales (Products)
|
Labor Standards (labor-hours/ product)
|
Machine Standard (machine-hours/ product)
|
|
1stQuarter
|
2ndQuarter
|
3rdQuarter
|
4thQuarter
|
|
A
|
22,000
|
19,000
|
17,000
|
15,000
|
7.95
|
5.77
|
|
B
|
11,000
|
9,000
|
7,000
|
10,000
|
6.56
|
4.10
|
|
C
|
21,000
|
18,000
|
17,000
|
19,000
|
3.22
|
2.55
|
|
D
|
16,000
|
13,000
|
12,000
|
14,000
|
4.90
|
3.15
|
|
E
|
7,000
|
5,000
|
5,000
|
7,000
|
3.11
|
2.10
|
- Compute the labor-hours required for each quarter.
- Compute the machine-hours for each quarter.
- If the machine-hours were sufficient and employees worked 13 weeks in each quarter and 40 hours in each week, determine how many employees the company would require in each quarter, using these aggregate plans:
a) level capacity and
b) matching demand.