Question
Estimated monthly demands of product Q for the next year: Month 1 2 3 4 5 6 7 8 9 10 11 12 Demand 900
Estimated monthly demands of product Q for the next year:
| Month | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 |
| Demand | 900 | 850 | 650 | 850 | 1000 | 70 | 50 | 60 | 120 | 80 | 150 | 100 |
The production manager wants to minimize the total costs of inventory and shortage. What capacity planning strategy do you suggest? Compute the resulting inventory and shortage of your strategy.
Show all steps and calculation. Provide formula better.
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Financial Accounting Tools for Business Decision Making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
5th Edition
9781118560952, 1118560957, 978-0470239803
