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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