What production is needed each month to meet

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Reference no: EM131900470

(please answer each step of the question)

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: EM131900470

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