Assume you have been assigned the task of identifying a level strategy aggregate production plan for the coming year.You have been informed that beginning inventory is 2,000 units,your plan should provide an ending inventory for the year equal to 500 units,and you have been provided the following forecasts of aggregate demand.What should be the planned rate of quarterly production?

A) 6,500 units
B) 6,000 units
C) 5,625 units
D) 5,375 units

Question

Assume you have been assigned the task of identifying a level strategy aggregate production plan for the coming year.You have been informed that beginning inventory is 2,000 units,your plan should provide an ending inventory for the year equal to 500 units,and you have been provided the following forecasts of aggregate demand.What should be the planned rate of quarterly production?

A) 6,500 units 
B) 6,000 units 
C) 5,625 units 
D) 5,375 units

Quizplus · Accepted Answer

[(6,000+5,500+5,000+6,500) + 500 - 2,000]/4 = 5,375.

Assume You Have Been Assigned the Task of Identifying a Level