Bell Inc. needs to develop a production plan for laptop computers. The opening inventory is 100 laptops and the company wants to reduce the inventory to 80 by the end of the planning period. The company wants to keep the production volume constant over the planning period. Backlogs are not allowed. The expected demand for laptops is as follows:

How much should be produced in each period? What is the ending inventory in each period?

Textbook problem 3-1: The context is in the textbook. The data is shown below, with some additional information about production and inventory holding costs. Decide the production schedule for each month so that there are 80 units remaining in inventory at the end of month 5. 4 1 110 2 120 3 130 5 120 120 Period Demand Production Inventory Total 600 0 100 -10 -130 -260 -380 -500 Production cost Inventory cost Total cost $100 $25 SO $0 SO SO SO SO SO SO SO $0 $0 $0 $0 $0 $0 SO