The XYZ manufacturing company produces a product which has 6 month demand cycle as given below:

Month

Demand in Units

Working days/month

January

600

22

February

1000

19

March

800

21

April

200

21

May

400

22

June

600

2

Company's policy is to retain safety stock of 20% of monthly demand and each month's safety stock becomes the opening stock for the next month, and opening stock for January is 100 units. Each unit requires 10 labour-hours and company works 8 hour/day.

If there are currently 20 workers employed, and how many worker are needed to be laid off in January to accommodate demand?

Option 1 - <p>February</p>
Option 2 - <p>March</p>
Option 3 - <p>January</p>
Option 4 - <p>May</p>
2 Views|Posted 7 months ago
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1 Answer
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7 months ago
Correct Option - 4
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