The Amalgamated Mailbox Company manufactures a family of two mailboxes. The production plan and the MPS are developed on a quarterly basis. The forecast for the product group follows. The opening inventory is 270 units, and the company wants to reduce this to 150 units at the end of the year. Develop a level production plan.

Production plan

Mailbox A. Lot size: 200

Mailbox B. Lot size: 200

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2 3 Quarter 4 Total Forecast Sales 300 220 200 200 270 Projected Available Balance Production Plan 2. Quarter 1 2 3 4 Total Forecast Sales 180 100 120 120 Projected Available Balance 120 MPS