A Company Wants to Develop a Level Production Plan for a Family

question 6

Essay

A company wants to develop a level production plan for a family of products. The opening inventory is 100 units, and an increase to 160 units is expected by the end of the plan. The demand for each period is given. How much should the company produce
each period? What will be the ending inventories in each period. Assume all periods have the same number of working days. $$\begin{array} { l l l l l l l l } \text { Period } & 1 & 2 & 3 & 4 & 5 & 6 & \text { Total } \\\text { Forecast Demand } & 100 & 120 & 130 & 140 & 120 & 110 & \\\text { Planned Production } & & & & & &\\\text { Planned Inventory }& 100\end{array}$$

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