10. Below is the plotted cumulative Sales Plan for Joan’s Joyous Nature Food (in pounds) for the next four months. Beginning inventory is 10 pounds.

a. How much should Joan produce each month if she wishes to have a level operations plan with no back orders or stockouts? Plot your cumulative production on the preceding graph.

b. What is ending inventory for month 4 under this plan?

c. Joan decides to have a level-production, level-employment sales, and operations plan with no ending inventory at the end of the planning horizon. How much should she make each month? What are the monthly back orders?

d. Given inventory carrying costs of $5/pound/month (based on the average inventory) and back orders of $8/pound/month (based on month-end back orders), calculate the cost of back orders and inventory for the plan in part c.

Transcribed Image Text:

Month Sales Plan 234 1 2 120 160 20 4 70