The XYZ manufacturing company produces a product which has a 6 month demand cycle as given below:
Demand in Units
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 50 units. Each unit requires 10 labour-hours and company works 8 hour/day.
If there are currently 20 workers employed, and how many workers are needed to be laid off in January to accommodate demand?