A Company Is Seeking to Develop a Master Production Schedule

Essay

A company is seeking to develop a master production schedule for its product. Their beginning inventory is 1000 units, and they want to maintain a safety stock level of 1000 units. They produce the product in a fixed lot size of 1200 units. Information regarding weekly demand is shown below:
$$\begin{array} { | l | l | l | l | l | l | l | } \hline \text { Week } & 1 & 2 & 3 & 4 & 5 & 6 \\\hline \text { Demand } & 1000 & 1100 & 1300 & 900 & 500 & 1000 \\\hline\end{array}$$
a.What is the ending inventory level for Week 2?
b.What is the production quantity for Week 4?