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A production planner, Lovell Bradley, is developing a production plan

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A production planner, Lovell Bradley, is developing a production plan that involves back orders. The company's demand and production rates for the next four periods are as follows:

Period / Demand / Production
1 / 8,200 / 8,000
2 / 10,000 / 8,000
3 / 7,000 / 8,000
4 / 6,600 / 7,600

Beginning inventory at the start of period 1 is 400 units. Calculate beginning inventory, ending inventory, average inventory, and the back order amount, if any, for each of the next four periods.

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Solution Summary

The attached Excel file contains the production plan for the company, including calculations for beginning inventory, average inventory, ending inventory, and back order amount.

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