An operations planner, Lovell Bradley, is developing a sales and operations plan

Question

An operations planner, Lovell Bradley, is developing a sales and operations plan that involves backorders. The company's demand and production rates for the next six eriods are as follows X = 36 Period Demand Production 8,000 10,000- 2X 8,000 8,200 8,200 510,000 - 2X8,600 7,800 8,000 +2X 7,000 + X 6,600 +2X 4 8,000 + X Beginning inventory at the start of period 1 is "2X" units. Calculate beginning inventory ending inventory, average inventory, and the backorder amount, if any, for each of the next six periods Period: 2 3 4 6 Beginning Inventory Production Demand Ending Inventory Average Inventory* Backorders

Explanation / Answer

X= 36 Period 1 2 3 4 5 6 Is closing of prev period Beg Inv 72 0 0 0 800 0 Given as per table Production 8000 8000 8200 8200 8600 7800 Given as per table Demand 8072 9856 7072 6672 9856 8036 P+BO-D Ending inv 0 0 0 800 0 0 BI+CI/2 Avg inv 36 0 0 400 400 0 D-BI-P Back orders 0 1856 728 0 456 692

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