Question: Production plan set - up Item: rye bread Manufacturing strategy: make - to - stock Planning strategy: level production Planning horizon: five weeks. Opening inventory:

Production plan set-up
Item: rye bread
Manufacturing strategy: make-to-stock
Planning strategy: level production
Planning horizon: five weeks.
Opening inventory: 10 loaves
Ending inventory: 5 loaves
Cost of carrying inventory: $.25/ loaf / week
Expected demand: Week 1: 9 loaves; Week 2: 10 loaves; Week 3: 11 loaves; Week 4: 10 loaves; Week
5: 15 loaves.
Answers:
Production plan shown graphically
Period 012345 Total
Demand n/a 910111015
Production n/a
Inventory 105 n/a
Production answers given in writing:
1. Each week, _______ loaves of bread should be produced?
2. Loaves of bread in inventory: Week 1__; Week 2__; Week 3__; Week 4__; Week 5__;
3. The total cost of carrying the inventory of the production plan is $ ________

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