A. From the following forecast determine the monthly inventory balances required to follow a plan of letting the inventory absorb all fluctuations in demand. In this case, we have a constant work force, no idle time or overtime, no back orders, no use of subcontractors, and no capacity adjustment. Assume that the firm does not use safety stock or cushion inventory to meet the demand. Month Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Forecasted demand 90 220 210 400 612 700 378 220 200 110 100 260 Production 22 18 21 20 22 20 21 22 202 25 19 20 days

Marketing
20th Edition
ISBN:9780357033791
Author:Pride, William M
Publisher:Pride, William M
Chapter19: Pricing Concepts
Section: Chapter Questions
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Solve the following questions
Q1.
A. From the following forecast determine the monthly inventory balances required to follow a
plan of letting the inventory absorb all fluctuations in demand. In this case, we have a constant
work force, no idle time or overtime, no back orders, no use of subcontractors, and no capacity
adjustment. Assume that the firm does not use safety stock or cushion inventory to meet the
demand.
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Forecasted
demand
90 220 210 400 612 700
378
220
200
110
100 260
Production
days
22 18 21
20 22
20 21 22
20 25 19 20
Transcribed Image Text:Solve the following questions Q1. A. From the following forecast determine the monthly inventory balances required to follow a plan of letting the inventory absorb all fluctuations in demand. In this case, we have a constant work force, no idle time or overtime, no back orders, no use of subcontractors, and no capacity adjustment. Assume that the firm does not use safety stock or cushion inventory to meet the demand. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Month Forecasted demand 90 220 210 400 612 700 378 220 200 110 100 260 Production days 22 18 21 20 22 20 21 22 20 25 19 20
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