MAKING THE PRODUCTION PLAN

 

💓Question and Answer here !

 

1.       What are the three basic production under production plan strategies?

 -          Chase strategy, production leveling and subcontracting

 

2.       What is hybrid strategy?

 -          Healthy competition between companies to achieve high sales but set low prices to attract customers

 

3.       What formula of total production?

 -          Total production = total forecast + back orders + ending inventory – opening inventory

 

4.       What formula of ending inventory?

 -          Ending inventory = opening inventory + production – demand

 

5.       If the opening inventory is 500 units, demand is 2000 units, and production is 5000 units what will be the ending inventory?

 

-          Ending inventory = 500 + 5000 – 2000

                      = 3500 units