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.

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.

Prepare the capacity plan as below.

Transcribed Image Text:

Period Forecast 1 2 200 200 3 300 4 5 6 500 200 400 Total 1,800 Period Forecast Production: Regular Overtime Inventory: Beginning Ending Backorders 1 200 290 2 200 290 3 300 290 4 400 290 5 500 290 6 200 290 Total 1,800 1,740 Period Forecast 1 2 200 200 3 300 4 5 6 500 200 400 Total 1,800 Period Forecast Production: Regular Overtime Inventory: Beginning Ending Backorders 1 200 290 2 200 290 3 300 290 4 400 290 5 500 290 6 200 290 Total 1,800 1,740

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