Should we make any changes to our plan

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Reference no: EM131917076

Please be explicit on the answer to:

The Sohn Aerospace Division of Sohnco has a demand forecast for the first three months of next year is

January 600 ships

February 100 ships

March 900 ships

Strangely, they have 100 ships in stock as of December 31.

a) Plot cumulative demand and a level aggregate production plan with no back orders and no ending inventory.

b) What production is needed each month to meet part a's conditions?

c) Suppose any left-over ships at the end of each month cost $500,000 per month in storage and interest costs. Assume the start-up inventory is not part of the calculation. Should we make any changes to our plan? Explain your answer.

Reference no: EM131917076

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