For the year ended 31 December 20X7, the quantities of units sold are expected to be: The

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For the year ended 31 December 20X7, the quantities of units sold are expected to be:

The opening stock at 1 January 20X7 will be 144 units. The closing stock desired at 31 December 20X7 is 150 units.


Required:

(a) What will production be per month if an even production flow is required and stock levels during the year can fall to zero because that minimises the cost of holding stock?

(b) Given the same information plus the constraint that stock levels must never fall below 80 units, and that extra production will be undertaken in January 20X7 to ensure this happens, what will be the January production figure?

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