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The production planner of Omega Optical, a producer of industrial lenses, created the following production plan for next 4 periods.

Period 1 Period 2 Period 3 Period 4

Demand Forecast 40000 70000 30000 55000
Beginning Inventory 9000
Planned Production 48000 48000 48000 48000
Ending Inventory

a. Is production planner following the chase demand or level capacity strategy?

b. find out the projected beginning and ending inventory for each period. Possible backorders may be shown by negative inventory.

 

Project Management, Management Studies

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