A Pizza Company has a demand forecast for the next 12 months that is shown in Table 1 The current workforce of 100 staff can produce 1500 cases of pizzas per month. (a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan? (b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours? Table 1 demand forecast Month Demand (cases per month) January 600 February 800 March 1000 April 1500 May 2000 June 1700 July 1200 August 1100 September 900 October 2500 November 3200 December 900
A Pizza Company has a demand
The current workforce of 100 staff can produce 1500 cases of pizzas per month.
(a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan?
(b) Prepare a demand chase plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels of only 10 per cent greater than normal working hours?
Table 1 demand forecast
Month Demand (cases per month)
January 600
February 800
March 1000
April 1500
May 2000
June 1700
July 1200
August 1100
September 900
October 2500
November 3200
December 900
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