Question

If the expected demand during the next four quarters is 150, 125, 100, 75 thousand units and each worker can produce 1,000 units per quarter; how many workers should be used if a level strategy is being employed?

Short answer

Organizations utilize different labor force systems to deal with the changing business sector interest. An unadulterated strategy utilized by the organizations that use stock and rainchecks to fulfill the market need is named as level strategy.

Step-by-step solution

Compute the necessary number of workers for the organization involving the level strategy as displayed beneath

$$\begin{gathered} \mathrm{Numbers}\mathrm{of}\mathrm{workers}\mathrm{required}=\frac{\mathrm{Total}\mathrm{expected}\mathrm{demand}\mathrm{for}\mathrm{four}\mathrm{quarters}}{\mathrm{Production}\mathrm{level}} \\ =\frac{150,000+125,000+100,000+75,000}{1000\times 4} \\ =\frac{450,000}{4000} \\ =113\mathrm{workers} \end{gathered}$$

Total number of workers

Subsequently, it is reasoned that the complete number of workers expected to fulfill the demand is 113 workers.