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Planners for a company that makes several models of skateboards are about to prepare the capacity plan that will cover six periods. They have
Planners for a company that makes several models of skateboards are about to prepare the capacity plan that will cover six periods. They have assembled the following information. Period Forecast Tota I 1800 They intend to start with zero inventory on hand in the first period, and their production rate is 290 units per period. use overtime at a fixed rate of 20 units per period as needed. Plan for an ending inventory of zero for period 6. Backorders cannot exceed 90 units per period. Period Forecast Production Re ular Overtime Out ut Inventory Beginning Endin Backorders Tota I 1800 1740 1200 -150 -110 170 170 Compare and contrast two simple pure strategies, i.e., chase strategy and level strategy, for capacity planning.
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