Month

January February March April

forecasted demand (in units) 1000 3000 1000 5000
cummulative demand 1000 4000 5000 10000
No. of working days 24 25 20 22
cummulative no. of working days 24 49 69 91
units to be produced per day to meet
demand 41.6666666666667 120 50 227.2727
units to be produced per day to meet
demand (approx.) 42 120 50 228
no. of units to be produced per day (level output rate ) 153.153153153153
154 (represents rate of production units)
No. of workers 77

cummulative no. of working days cummulative demand

24 1000 24 41.66667
49 4000 49 81.63265
69 5000 69 72.46377
91 10000 91 109.8901
111 17000 111 153.1532
135 19000 135 140.7407
 May June
7000 2000 No. of computers assembles by a worker 2
17000 19000 overtime cost per day per unit Rs. 3
20 24 maximum capacity of the factory (units) 200
111 135

350 83.33333
20000
350 84
18000
cummulative demand/production (units)

ts rate of production units) 16000

14000
12000 Cummulative demand
curve
10000 Cummulative
8000 production curve
inventory
accumulation
6000
4000
2000
0
24 49 69 91 111 135
Cummulative no. of working days
demand

135
 Month
January February March April May June
forecasted demand (in units) 1000 3000 1000 5000 7000 2000
No. of working days 24 25 20 22 20 24
output rate per day 154 154 154 154 154 154
output (units) 3696 3850 3080 3388 3080 3696
beginning inventory 0 2696 3546 5626 4014 94
net addition (substration) 2696 850 2080 -1612 -3920 1696
Ending inventory 2696 3546 5626 4014 94 1790
average invnetory 1348 3121 4586 4820 2054 942 16871
223.768 518.086 761.276 800.12 340.964 156.372 2800.586
 Month
January February March April May June
forecasted demand (in units) 1000 3000 1000 5000 7000 2000
No. of working days 24 25 20 22 20 24
output rate(units/day) 42 120 50 228 350 84
output units 1008 3000 1000 5016 7000 2016
beginning inventory 0 8 8 8 24 24
net addition(or substraction) 8 0 0 16 0 16
ending inventory 8 8 8 24 24 40
average inventory 4 8 8 16 24 32
change in output rate 0 78 -70 178 122 -266
cost of change in output rate 0 2000 2000 5000 5000 8000
no. of units above max. capacity 28 150
Total overtime cost (@ Rs. 3 per unit/day) 1848 9000 0
Total cost
cost number of units change in output rate (positive or negative)compared to previous month
range (units)
1-100 2000
101-200 5000
201-300 8000

maximum capacity 200

15.272

22000

10848
32863.27
ed to previous month
 Month cost
January February March April May June
forecasted demand (in units) 1000 3000 1000 5000 7000 2000
No. of working days 24 25 20 22 20 24
output rate(units/day) 100 100 100 200 200 200
output units 2400 2500 2000 4400 4000 4800
beginning inventory 0 1400 900 1900 1300 0
net addition(or substraction) 1400 -500 1000 -600 -3000 2800
ending inventory 1400 900 1900 1300 -1700 2800
average inventory 700 1150 1400 1600 -200 1400 805.1
change in output rate 0 0 0 100 0 0
cost of change in output rate 0 0 0 2000 0 0 2000
Total cost 2805.1
*Note: for month of May inventory is negative, therefore average inventory is also negative not z
Yes -ve inventory mean no inventory but we estimated average inventory -ve to known stockout q

Month cost
January February March April May June
forecasted demand (in units) 1000 3000 1000 5000 7000 2000
No. of working days 24 25 20 22 20 24
output rate(units/day) 125 125 125 200 200 200
output units 3000 3125 2500 4400 4000 4800
beginning inventory 0 2000 2125 3625 3025 25
net addition(or substraction) 2000 125 1500 -600 -3000 2800
ending inventory 2000 2125 3625 3025 25 2825
average inventory 1000 2062.5 2875 3325 1525 1425 2027.275
change in output rate 0 0 0 75 0 0
cost of change in output rate 0 0 0 2000 0 0 2000
no. of units above max. capacity 0 0
overtime cost @ Rs. 3 per unit/day 0 0 0 0
Total cost 4027.275
ge inventory is also negative not zero. That represents that on an average 200units are stockouts.
inventory -ve to known stockout quantity.