Question: An operations planner, Lovell Bradley, is developing a sales and operations plan that involves back orders. The companys demand and production rates for the next
An operations planner, Lovell Bradley, is developing a sales and operations plan that involves back orders. The companys demand and production rates for the next four periods are as follows.
| Period | Demand | Production |
| 1 | 8,200 | 8,000 |
| 2 | 10,000 | 8,000 |
| 3 | 7,000 | 8,000 |
| 4 | 6,600 | 7,600 |
Beginning inventory at the start of period 1 is 400 units.
a) The company holds a positive level of ending inventory in periods [ Select ] ["1 and 4", "2 and 4", "1 and 2", "3 and 4", "1 and 3", "2 and 3"] , and this level equals [ Select ] ["800", "200", "400", "1800"] in each of the periods.
b) The company has to place back orders in periods [ Select ] ["2 and 4", "1 and 3", "1 and 4", "2 and 3", "1 and 2", "3 and 4"] , and the quantities of the back orders are [ Select ] ["1800", "400", "800", "200"] and [ Select ] ["800", "1800", "200", "400"] , respectively.
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