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A company wants to develop a level production plan for a family of products. The opening inventory is 550 units, and a decrease to 200
A company wants to develop a level production plan for a family of products. The opening
inventory is 550 units, and a decrease to 200 units is expected by the end of the plan.
The demand for each of the periods is given in what follows. All periods have the same
number of working days. How much should the company produce each period? What
will be the ending inventories in each period? Do you see any problems with the plan?
period | 1 | 2 | 3 | 4 | 5 | 6 | total |
forecast demand | 1300 | 1200 | 800 | 600 | 800 | 900 | |
planned production | |||||||
planned inventory. 550 |
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