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Calculation Problem (6 marks) A manufacturer of bicycle parts is looking at the expected demand for all of their seats over the next 6 months.
Calculation Problem (6 marks)
A manufacturer of bicycle parts is looking at the expected demand for all of their seats over the next 6 months. They want to plan out a level production strategy in the charts below
Chart 1
Fill out the inventory production amounts and the inventory levels for each month.
The starting inventory is 300 units.
Month | Starting values | 1 | 2 | 3 | 4 | 5 | 6 | Total | |
Demand | 1000 | 1400 | 1200 | 1300 | 1100 | 900 | |||
Production | |||||||||
Inventory |
Chart 2
In this plan the company wants to see the effects of finishing with an additional 600 units, making the ending inventory 900 units. The starting inventory is 300 units.
Month | Starting values | 1 | 2 | 3 | 4 | 5 | 6 | Total | |
Demand | 1000 | 1400 | 1200 | 1300 | 1100 | 900 | |||
Production | |||||||||
Inventory |
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