A Firm Produces One Product on a Produce-To-Stock Basis and Is

question 49

Essay

A firm produces one product on a produce-to-stock basis and is trying to develop a master production schedule for production. The safety stock level for this product is 30 units, and the fixed lot size is 50 units. The beginning inventory is given as 50 units. The demand for this product comes from four different sources, and the demand estimates for the next four weeks are given as:
$\begin{array}{|l|l|l|l|l|}\hline & \text { Week } & & & \\\hline \text { Source } & 1 & 2 & 3 & 4 \\\hline \text { Intra-company orders } & 10 & 0 & 0 & 20 \\\hline \text { Warehouse Orders } & 0 & 20 & 0 & 10 \\\hline \text { R \& D Orders } & 10 & 0 & 10 & 0 \\\hline \text { Cistomer Orders } & 30 & 25 & 15 & 30 \\\hline \text { Total Weekly Demand } & 50 & 45 & 25 & 60 \\\hline\end{array}$
a.What is the production quantity for Week 2?
b.What is the beginning inventory for Week 4?