Acme Water Pumps

The Acme Water Pump Company has a problem. The pumps are fairly expensive to make and store, so the company tends to keep the inventory low. At the same time, it is important to respond to demands quickly, since a customer who wants a water pump is very likely to get one from a competitor if Acme doesn't have one available immediately. Acme's current policy to produce pumps is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up for water pump production for the next week and states that he has capacity available to produce 300 at a time next week.

The following lists the forecasts and actual customer orders for the next 12 weeks