Making The Production Plan

 Questions and Answer !

1. What are the three basic production planning strategies?

: Chase strategy, production leveling and subcontracting

2. What is the objectives of hybrid strategy? 

: A hybrid strategy seeks simultaneously to achieve differentiation and low price relative to competitors

3. What are the formula of total production in level production plan?

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

4. What are the formula of ending inventory in level production plan?

: Ending inventory = opening inventory + production - demand

5. If the opening inventory is 600 units, demand is 2000 units and production is 4500 units what will be the ending inventory? 

: Ending inventory = 600+4500-2000 = 3100 units