If Frank has 85 chickens in stock and he forecasts the following monthly demands. Using a...
If Frank has 85 chickens in stock and he forecasts the following
monthly demands. Using a level production plan how many chickens
will Frank need to supply each month to meet the demand?
January = 190
February =272
March = 170
April = 361
Calculate your answer to one decimal place.
Homework Answers
The net total requirement for the four months = (190+272+170+361) - 85 = 908
The production level = 908 / 4 = 227
| Month | Demand | Production | Ending Inventory |
| 85 | |||
| Jan | 190 | 227 | 122 |
| Feb | 272 | 227 | 77 |
| Mar | 170 | 227 | 134 |
| Apr | 361 | 227 | 0 |
So,
Frank need to supply each month 227 chickens to meet the demand.
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