An operations planner, Lovell Bradley, is developing a sales and operations plan that involves backorders. The companys
Question:
An operations planner, Lovell Bradley, is developing a sales and operations plan that involves backorders. The company’s demand and production rates for the next six periods are as follows
BEGINING INVENTORY = 400
Period | Demand | Production |
1 | 8,000 + X | 8,000 |
2 | 10,000 – X | 8,000 |
3 | 7,000 + X | 8,200 |
4 | 6,600 + X | 8,200 |
5 | 10,000 – X | 8,600 |
6 | 8,000 + X | 7,800 |
Beginning inventory at the start of period 1 is “X” units. Calculate beginning inventory, ending inventory, average inventory, and the backorder amount, if any, for each of the next six periods.
Period: | 1 | 2 | 3 | 4 | 5 | 6 |
Beginning Inventory | | | | | | |
Production | | | | | | |
Demand | | | | | | |
Ending Inventory | | | | | | |
Average Inventory* | | | | | | |
Backorders | | | | | | |
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young