# Question 1 Mike Blanford, master scheduler at General Avionics, has the following demand forecast fo

Question 1
Mike Blanford, master scheduler at General Avionics, has the following demand forecast for one line in
his factory:
Quarter Unit Sales 1 10,000 2 22,000 3 11,000 4 12,000 At the beginning of quarter 1, there are 7,000 units in inventory The firm has prepared the following
data:
Hiring cost per employee = \$500
Firing cost per employee = \$1,000
Beginning workforce = 60 employees
Inventory carrying cost = \$2 per unit per quarter (charged on ending inventory)
Stockout cost = \$5 per unit per quarter of ending stockout quantity
Regular payroll = \$5,200 per employee per quarter
Each employee can produce 200 units per quarter If Mike produces exactly enough to meet demand
each quarter with no inventories at the end of quarters, how much will he produce each quarter, and
what is the overall cost? (Use a spreadsheet model for the calculations)
Question 2
Use the data in Question 2 to calculate production quantities and costs for a level rate of output with no
ending inventory at the end of quarter 4 In this case, you may allow items to be backordered (but all
demand must be met by the end of quarter 4, ie no lost sales permitted)