Butterfly Inc is making a 6month plan for the workforce leve

Butterfly, Inc. is making a 6-month plan for the workforce levels at their plant in Indiana.

This plant produces two different excavators: XC1 and XC2. The demand for each model over the next six months is shown below

Month

XC1

XC2

1

180

90

2

160

70

3

190

100

4

240

130

5

200

150

6

200

190

It takes 5 worker days to produce one XC1 and 8 worker days to produce one XC2. Each worker will work for 20 days per month. The initial inventory levels are expected to be 40 units of XC1 and 30 units off SC2. Butterfly wants to have 30 units of XC1 and 70 units of XC2 at the end of month.

(a) Find the aggregate demand (measured in worker days) for each of the next six months. (The aggregate demand should reflect the desired ending inventory levels.)

(b) Butterfly decided to use a mixed strategy to plan the workforce levels. They will follow a

constant workforce plan in the first three months, and they will switch to a zero inventory plan for the last three months. Find appropriate workforce schedule for month 1 through 3, month 4, month 5 and month 6.

(c) At the end of the month 6, what is the actual (i.e., true, physical) ending inventory level, measured in terms of workers days? (The desired ending inventory should be included in the consideration).

Solution

A.

B.