A company wants to develop a level production plan for a family of products. The opening inventory is 500 units, and a decrease to 250 units is expected by the end of the plan. The demand for each of the months is given in what follows. How much should the company produce each month? What will be the ending inventory in each month? Do you see any problems with the plan?

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Feb Jun Total Apr Mar Month Jan May Working Days 20 20 22 20 19 18 Forecast Demand 1200 1300 900 700 800 700 Planned Production 500 Planned Inventory