Begin, Production, and Demand

Production Plan

The production plan adds units to inventory each period.

highlighted = computed this step

Production Plan

Production is 100 units in each period.

first-period production=100second-period production=100\text{first-period production} = 100\quad\text{second-period production} = 100
Inventory balanceThe chart follows inventory through two periods.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