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2.11 A company wants to develop a level production plan for a family of products. The opening inventory is 100 units and an increase to 130 units is expected by the end of the plan. The demand for each month is given in what follows, calculate the total production, daily production, and production, and ending inventory for each month.

Total production = 530 +130 –100 = 560 units

Daily production = 560/70 = 8 units/day

Ending inventory calculation example:

The monthly planned production for May = 21 ( 8 = 168 units

The ending inventory for May = 100 + 168 - 115 = 153 units

The monthly planned production for June = units

The ending inventory for June = units

The monthly planned production for July = units

The ending inventory for July = units

The monthly planned production for Aug = units

The ending inventory for Aug = units

The final results are shown in the table below (Please filling in the table by yourself):

Month

May

June

July

Aug

Total

Working days

21

19

20

10

70

Forecast demand

115

125

140

150

530

Planned Production

168

560

Planned inventory 100

153

2.12 A company wants to develop a level production plan for a family of products. The opening inventory is 600 units and decrease to 200 units is expected by the end of the plan. The demand for each of months is given in what follows. How much the company produce each month? What will be the ending inventory in each month? Do you see any problems with the plan?

2.13 Because of its labor contract a company must hire enough labor for 100units of production per week on one shift or 200 units per week on two shifts. They cannot hire layoff or work over time. During the fourth week workers will be available from another department to work part or all of an extra shift (up to 100 units). There is a planned shut down for maintenance in second week which will cut to half. Develop a production plan the open inventory is 200 units and desired ending inventory is 300 units.

Total production = 300 +1080 –200 = 1180 units

Number of weeks available for production = 5.5 (because week 2 is half week)

Average weekly level production = 1180/5.5 = 214.5 units/week

The nearest quantity that can be produced is 200 units on two shifts. In the second week there is a shutdown so production in that week will be only 100 units

Total production so far = 5 ( 200 + 100 = 1100 units.

The balance of 80 units can be made in week four when extra help is available. But when you make you have to make at least 100, so that week four’s production will be 300. Therefore, total production is:

(Please filling in the table below)

Week

1

2

3

4

5

6

Total

Forecast demand

120

160

240

240

160

160

1080

Planned Production

Planned inventory 200

Finally, the ending inventory will not be 300 units, why?