Bart incorporated manufactures rotary air fans and uses a

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Reference no: EM13382565

Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year. It allows for regular time, part time, overtime, and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods. Both anticipation inventory and backorders are allowed. The beginning (or current) inventory is 20 units. Their first attempt at a sales and operations plan has resulted in the following.

	1	2	3	4	5	6	Total
Inputs
Forecasted demand	100	125	120	80	75	70	570
Workforce Level	80	80	80	80	80	80	480
Part Time	12	12	12	12	12	12	72
Overtime	0	0	0	0	0	0	0
Subcontract	0	0	0	0	0	0	0
Derived
Beginning inventory	20	12	0	0	0	0
Ending inventory	12	0	0	0	0	2
Backlog	0	21	49	37	20	0	127
Calculated
Workforce level $5	400	400	400	400	400	400	$2,400
Part Time $6	72	72	72	72	72	72	$432
Overtime $7.5	0	0	0	0	0	0	$0
Subcontract $8	0	0	0	0	0	0	$0
Inventory holding $5	80	30	0	0	0	5	$115
Back orders $20	0	420	980	740	400	0	$2,540

Total	$552	$922	$1,452	$1,212	$872	$477	$5,487

Use the information in Table 14.1. According to the production plan, what will be the total ending inventory in the second month after the second month's demand is satisfied?

-21 units

0 units

21 units

Greater than 25 units

Question 2

	1	2	3	4	5	6	Total
Inputs
Forecasted demand	100	125	120	80	75	70	570
Workforce Level	80	80	80	80	80	80	480
Part Time	12	12	12	12	12	12	72
Overtime	0	0	0	0	0	0	0
Subcontract	0	0	0	0	0	0	0
Derived
Beginning inventory	20	12	0	0	0	0
Ending inventory	12	0	0	0	0	2
Backlog	0	21	49	37	20	0	127
Calculated
Workforce level $5	400	400	400	400	400	400	$2,400
Part Time $6	72	72	72	72	72	72	$432
Overtime $7.5	0	0	0	0	0	0	$0
Subcontract $8	0	0	0	0	0	0	$0
Inventory holding $5	80	30	0	0	0	5	$115
Back orders $20	0	420	980	740	400	0	$2,540

Total	$552	$922	$1,452	$1,212	$872	$477	$5,487

Use the information in Table 14.1. If the firm is committed to the regular production and overtime production as shown, what level of anticipation inventory would be needed at the start of the first month to result in an ending inventory of zero after month 6?

9 or fewer units

10 to 17 units

18 to 25 units

25 to 32 units

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Reference no: EM13382565

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