Question: 3) You are developing a sales and operations plan that involves inventory and backorders. The demand and planned production rates for four quarters are given
3) You are developing a sales and operations plan that involves inventory and backorders. The demand and planned production rates for four quarters are given below. Beginning inventory is also given. What will be the inventory on hand (or number of backorders) at the end of Quarter 2?
Positive if inventory, negative if backorders.
| Quarter | 0 | 1 | 2 | 3 | 4 |
| Sales Plan | 820 | 858 | 812 | 688 | |
| Production Plan | 469 | 839 | 669 | 844 | 512 |
| Inventory/Backorders |
4) You have the following sales plan and production days available for the next 4 quarters. Each employee can produce 10 units per day. You must keep the number of employees constant for the full year. How many units do you need to produce each day?
| Quarter | Production Days | Sales Plan |
| 1 | 63 | 12,071 |
| 2 | 67 | 14,224 |
| 3 | 72 | 13,481 |
| 4 | 70 | 10,083 |
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