Question: Brightland Tech must develop an aggregate plan to meet the following 5 months of demand: Brightland has 50 units in inventory at this time, and

Brightland Tech must develop an aggregate plan to meet the following 5 months of demand: Month 1 2 3 4 5 Demand (Units) 200 50 200 200

Brightland has 50 units in inventory at this time, and the company intends to produce 150 units a month for the next 5 months, following a perfectly level aggregate plan.

a. Based on the Brightland Associates plan, what would the ending inventory be at the end of month 4?

b. Based on the Brightland Associates plan, what would the average inventory be during month 2?

c. Based on ending inventory levels, what are the total inventory holding costs over these 5 months of the Brightland Associates plan, given that it costs $0.50 to hold one unit in inventory for 1 month?

Month 1 2 3 4 5 Demand (Units) 200 50 200 200 150

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