Question: 2.12. A company wants to develop a level production plan for a family of products. The opening inventory is 500 units, and a decrease to

2.12. A company wants to develop a level production plan for a family of products. The opening inventory is
500 units, and a decrease to 100 units is expected by the end of the plan. The demand for each of the months
is given in what follows. How much should the company produce each month? What will be the ending
inventory in each month? Do you see any problems with the plan?
Month Jan Feb Mar Apr May June Total
Working Days 20 22 20 20 18 19 119
Forecast Demand 1200 1300 800 700 700 900 5600
Planned Production 933 933 933 933 933 933
Planned Inventory 500
1. How much should the company produce each month? (fill table)
2. What will be the ending inventory in each month? (fill table)
3. Do you see any problems with this plan? (provide answer below)

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