Brightland Tech must develop an aggregate plan to meet the following 5 months of demand: Month 1 2 3 4 5 Demand (Units) 200 50 200 200 150 Brightland has 50 units in inventory at this time, and the company intends to produce 150 units a month for the next 5 months, following a perfectly level aggregate plan. a. Based on the Brightland Associates plan, what would the ending inventory be at the end of month 4? b. Based on the Brightland Associates plan, what would the average inventory be during month 2? c. Based on ending inventory levels, what are the total inventory holding costs over these 5 months of the Brightland Associates plan, given that it costs $0.50 to hold one unit in inventory for 1 month?
Brightland Tech must develop an aggregate plan to meet the following 5 months of demand: Month 1 2 3 4 5 Demand (Units) 200 50 200 200 150 Brightland has 50 units in inventory at this time, and the company intends to produce 150 units a month for the next 5 months, following a perfectly level aggregate plan. a. Based on the Brightland Associates plan, what would the ending inventory be at the end of month 4? b. Based on the Brightland Associates plan, what would the average inventory be during month 2? c. Based on ending inventory levels, what are the total inventory holding costs over these 5 months of the Brightland Associates plan, given that it costs $0.50 to hold one unit in inventory for 1 month?
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Transcribed Image Text:Brightland Tech must develop an aggregate plan to meet the following 5 months of
demand:
Month
1
2
3
4
5
Demand (Units)
200
50
200
200
150
Brightland has 50 units in inventory at this time, and the company intends to produce
150 units a month for the next 5 months, following a perfectly level aggregate plan.
a. Based on the Brightland Associates plan, what would the ending inventory be at
the end of month 4?
b. Based on the Brightland Associates plan, what would the average inventory be
during month 2?
c. Based on ending inventory levels, what are the total inventory holding costs over
these 5 months of the Brightland Associates plan, given that it costs $0.50 to hold
one unit in inventory for 1 month?
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