Demand for the next four periods is given in what follows.

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter10: Introduction To Simulation Modeling
Section10.4: Simulation With Built-in Excel Tools
Problem 15P
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A company wants to develop a level production plan. The beginning inventory is zero.
     Demand for the next four periods is given in what follows.

  1. What production rate per period will give a zero inventory at the end of period 4?

  2. When and in what quantities will back orders occur? 
  3. What level production rate per period will avoid back orders?
    What will be the ending inventory in period 4? 

Period

 

  1 

  2 

  3 

  4 

Total

Forecast demand

 

  9

5

9

9

 

Planned production

 

 

 

 

 

 

Planned inventory

0  

 

 

 

 

 

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