Please explain your answer on how you got part c. Thank you! The Donald Fertiliz
ID: 390581 • Letter: P
Question
Please explain your answer on how you got part c. Thank you!
The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturing requirements (in gallons) for the next four quarters are 60,000, 90,000, 90,000, and 140,000 respectively. A level workforce is desired, relying only on anticipation inventory as a supply option. Stockouts and backorders are to be avoided, as are overtime and undertime a. Determine the quarterly production rate required to meet total demand for the year, and minimize the anticipation inventory that would be left over at the end of the year. Beginning inventory is o The quarterly production rate is 95000 gallons. (Enter your response as an integer) b. Specify the anticipation inventory that will be produced. (Enter your responses as an integers.) Quarter 2 3 4 Anticipation inventory (gallons) 35000 4000 45000 c. Suppose that the requirements (in gallons) for the next four quarters are revised to 90,000, 140,000, 60,000, and 90,000 respectively. If total demand is the same, what level of production rate is needed now, using the same strategy as above? The new quarterly production rate is gallons. (Enter your response as an integer.)Explanation / Answer
Total production requirement for next 4 quarters
= 90,000 + 140,000 + 60,000 + 90,000
= 380,000
At level production, quarterly production for all 4 quarters will be same.
Therefore, new quarterly production rate is = 380,000 / 4 = 95,000
The new quarterly production rate = 95,000 Gallons
The new quarterly production rate = 95,000 Gallons