Table 15.1
Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year.It allows for regular time,part time,overtime,and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods.Both anticipation inventory and backorders are allowed.The beginning (or current)inventory is 20 units.Their first attempt at a sales and operations plan has resulted in the following.

-Use the information in Table 15.1.If the firm is committed to the regular production and overtime production as shown,what level of anticipation inventory would be needed at the start of the first month to result in an ending inventory of zero after month 6?
A)9 or fewer units
B)10 units to 17 units
C)18 units to 25 units
D)25 units to 32 units

Question

Table 15.1
Bart Incorporated manufactures rotary air fans and uses a production-planning horizon of one-half year.It allows for regular time,part time,overtime,and subcontracting production to meet the demand but no more than 12 units may be made by each of these methods.Both anticipation inventory and backorders are allowed.The beginning (or current)inventory is 20 units.Their first attempt at a sales and operations plan has resulted in the following.
 
-Use the information in Table 15.1.If the firm is committed to the regular production and overtime production as shown,what level of anticipation inventory would be needed at the start of the first month to result in an ending inventory of zero after month 6?
A)9 or fewer units 
B)10 units to 17 units 
C)18 units to 25 units 
D)25 units to 32 units

Quizplus · Accepted Answer

The anticipation inventory needed at the start of the first month should be enough to cover the total demand over the six months minus the total production (regular and overtime) over the same period, resulting in zero ending inventory.

Table 15.1 Bart Incorporated Manufactures Rotary Air Fans and Uses a Production-Planning