Improper demand forecasting
y
It should forecast the demand more adequately.
y
More number of workers employed
y
Take a closer look at the actual number of workers requiredso that the production does not suffer.
y
This is pointed out Vice President of Planning when hesaid:
y
Thank Goodness, we have a generous vacation policy here.
y
At least, the inventories used to get down to a reasonablelevel at year end when the production volume is lowbecause of a large number of employee holiday vacations
y
It suggests that Planning is not accurate.