What-If and Scope

Higher Production What-If

A higher production plan raises ending inventory in both periods.

highlighted = computed this step

Higher Production

The what-if production is 105 units each period.

what-if first production=what-if second production=105\text{what-if first production} = \text{what-if second production} = 105
Higher production what-ifThe table recomputes ending inventory when production rises.higher-production what-ifproddemandendfirst period1059035second period10511030gain/final10030

What-If Endings

The what-if ending inventories are 35 and 30.

what-if endings=35,30\text{what-if endings} = 35, 30
Inventory balanceThe chart compares base balance with the higher-production what-if.aggregate inventory balancebegin inventory 20; base final 20casep1 prodp1 demandp1 endp2 prodp2 demandfinalgainbase100903010011020baselinewhat-if10590351051103010basebegininv 20period 1inv 30period 2inv 20prod 100demand 90prod 100demand 110what-ifbegininv 20period 1inv 35period 2inv 30prod 105demand 90prod 105demand 110what-if final 30; gain 10deterministic aggregate inventory arithmetic only

Final Gain

The final inventory gain is 10 units.

30−20=1030 - 20 = 10
Inventory balanceThe chart compares base balance with the higher-production what-if.aggregate inventory balancebegin inventory 20; base final 20casep1 prodp1 demandp1 endp2 prodp2 demandfinalgainbase100903010011020baselinewhat-if10590351051103010basebegininv 20period 1inv 30period 2inv 20prod 100demand 90prod 100demand 110what-ifbegininv 20period 1inv 35period 2inv 30prod 105demand 90prod 105demand 110what-if final 30; gain 10deterministic aggregate inventory arithmetic only