Question: In 3 , your objective is to increase production so that you end up with zero inventory and zero back orders at the end of

 In 3 , your objective is to increase production so that
you end up with zero inventory and zero back orders at the

In 3 , your objective is to increase production so that you end up with zero inventory and zero back orders at the end of quarter 3. You are also to use a level plan (at a different level from elther #1 or #2 ). So, calculate how much total production you would need during the first three quarters in order to achleve exactly zero inventory and zero back orders at the end of quarter 3 . Then, divide this evenly across the three quarters, and continue this amount of output into quarter 4. Now, recalculate your inventory and back-order numbers. You get to decide what category of output to use to provide the additional output (above what you show in \#1) required in this plan. Then, of course, calculate the resulting costs. In 4 , you will use a chase plan (meaning that production = sales in all four quarters, except for consuming the starting inventory of 4000 in the first quarter; in other words, first quarter output will equal the forecast minus the starting inventory). Be sure to read all of the details in this problem; a couple of things change from \#1. A chase plan means that you have to increase and decrease production, from one quarter to the next, to match sales. You get to decide how to do this (in other words, which category-or categories-of output to use)

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