A company wants to develop a level production plan for a family of products. The opening inventory is 550 units, and a decrease to 200 units is expected by the end of the plan. The demand for each of the periods is given in what follows. All periods have the same number of working days. How much should the company produce each period? What will be the ending inventories in each period? Do you see any problems with the plan?

Transcribed Image Text:

2 3 5 4 Period Total Forecast Demand 600 1300 1200 800 800 900 Planned Production 550 Planned Inventory