For the year ended 31 December 19X9 the sales of units are expected to be:

The opening stock at 1 January \(19 \mathrm{X} 9\) will be 140 units. The closing stock desired at 31 December \(19 \mathrm{X} 9\) is 150 units.

Required:

(a) What will production be per month if an even production flow is required and stock levels during the year could be allowed to fall to zero?

(b) Given the same information plus the constraint that stock levels must never fall below 80 units, and that extra production will be undertaken in January 19 X9 to ensure this, what will be the January production figure?

Transcribed Image Text:

January 110 July 70 February 180 August 30 March 170 September 170 April 150 October 110 May 120 November 150 June 100 December 190