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Develop a level production plan for a family of products

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Reference no: EM131704643

A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 150 units is expected by the end of the plan. The demand for each period is given what follows. How much should the company produce each period? What will be the ending inventories in each period? All periods have the same number of working days.

Period

  

1

2

3

4

5

6

Total

Forecast Demand

  

            100

            120

            125

            130

            115

            110

  

Planned Production

                

Planned Inventory

            100

              

Total Production = 750 units

Period Production = 125 units

The ending inventory for period 1 is 125; for period 5 it is 135

Reference no: EM131704643

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