Question: A company wants to develop a level production plan. The beginning inventory is zero. Demand for the next four periods is given in what follows.
A company wants to develop a level production plan. The beginning inventory is zero. Demand
for the next four periods is given in what follows.
a What production rate per period will give zero inventory at the end of period
points
b When and in what quantities will backorders occur? Complete the table and show all
calculations.
points
Period Total
Forecast Demand
Planned Production
Planned Inventory
c What is the minimum level production rate per period that will avoid backorders? What
will be the ending inventory in period Complete the table and show all calculations.
points
Period Total
Forecast Demand
Planned Production
Planned Inventory
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