Business, 24.03.2020 05:28 hoolio4495

You operate a production facility that faces the following forecasted seasonal demand pattern for Widget-A: 650 units/month for the first four months of the year, 1000 units/month for the next four, and 1500 units/month for the last four months of the year.

Suppose that you decide to produce at a constant rate of 1050 units per month throughout the year. You have zero inventory at the beginning of the year. Plot the resulting inventory level in your company's warehouse, as a function of time, on the graph. To simplify matters, assume that demand and production occur at a constant rate and not in discrete quantities.

What is the maximum inventory level during the year?

What is the average length of time a Widget-A will spend in your company's warehouse over the year (in months)?

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