Free CPIM Exam Braindumps (page: 20)

In some industries, _____________ is the only strategy that can be followed. Farmers, for instance, must produce in the growing season. The post office must process mail over the Christmas rush and in slack seasons. Restaurants have to serve meals when the customers want them. These industries cannot stockpile or inventory their products or services and must be capable of meeting demands as it occurs.

Total the forecast demand for the planning horizon. Determine the opening inventory and the desired ending inventory Calculate the total production required as follows:

Total Production = total forecast + back orders
+ ending inventory ­ opening inventory
Calculate the production required each period by dividing the total production by the number of periods.
Calculate the ending inventory for each period.
Above is the general procedure

The information needed to make a production plan is:

With reference to the above example; how much should be produced each period?