Consider the following sales and operations planning (aggregate planning) problem. Consider period 3. Let the beginning inventory be 300 and the desired ending inventory in period 3 be 500. What is the demand for period 3, if the production required to meet the demand under these conditions is 1200? a.1,000 b.1,200 c.1,400 d.800 e.1,400

Consider the following sales and operations planning (aggregate planning) problem. Consider period 3. Let the beginning inventory be 300 and the desired ending inventory in period 3 be 500. What is the demand for period 3, if the production required to meet the demand under these conditions is 1200?

a.1,000

b.1,200

c.1,400

d.800

e.1,400

 

Solution

The equation we use is

Ending Inventory = Beginning Inventory + Production – Demand

which means Demand = Beginning Inventory + Production – Ending Inventory

The data given is

Beginning Inventory = 300

Production =

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