Question: A company needs to develop an aggregate operations plan for a product family. Demand for the product family over the next 4 months is as
A company needs to develop an aggregate operations plan for a product family. Demand for the product family over the next 4 months is as follows:
| January | February | March | April | |
| Demand | 4300 | 3800 | 4800 | 4200 |
The beginning (or current) inventory is 200 units. Unmet demand is backordered. Assume the same number of working days in each month.
1. Develop a chase plan with the target inventory level of 300 units at the end of each month.
| January | February | March | April | |
| Demand | 4300 | 3800 | 4800 | 4200 |
| Production | ||||
| Inventory Level | ||||
| Beginning | ||||
| Ending |
2. Develop a level plan with the target inventory level of 300 units at the end of the planning horizon.
| January | February | March | April | |
| Demand | 4300 | 3800 | 4800 | 4200 |
| Product | ||||
| Inventory Level | ||||
| Beginning | ||||
| Ending |
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