The manufacturing company Highlands Archery has forecast the demand for the Grizzly compound bow for the next 4 months. The production manager at High- lands Archery has already created an aggregate production plan, based on that information: Month 1 Month 2 Month 3 Month 4 Demand 10,000 bows 5,000 bows 30,000 bows 50,000 bows Produce 25,000 Produce 25,000 Produce 25,000 Produce 25,000 Managers production plan bows bows bows bows a. If Highlands Archery uses the manager's production plan, how many bows would be in inventory at the end of the fourth month? b. Following this plan, which month has the highest average inventory? c. If Highlands Archery pays $1 per bow to keep a bow in inventory for 1 month, what is the total inventory cost of the manager's plan, based on monthly ending inventory?

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The manufacturing company Highlands Archery has forecast the demand for the
Grizzly compound bow for the next 4 months. The production manager at High-
lands Archery has already created an aggregate production plan, based on that
information:
Month 1
Month 2
Month 3
Month 4
Demand
10,000 bows
5,000 bows
30,000 bows
50,000 bows
Produce 25,000
Produce 25,000
Produce 25,000
Produce 25,000
Managers
production plan
bows
bows
bows
bows
a. If Highlands Archery uses the manager's production plan, how many bows would
be in inventory at the end of the fourth month?
b. Following this plan, which month has the highest average inventory?
c. If Highlands Archery pays $1 per bow to keep a bow in inventory for 1 month,
what is the total inventory cost of the manager's plan, based on monthly ending
inventory?
Transcribed Image Text:The manufacturing company Highlands Archery has forecast the demand for the Grizzly compound bow for the next 4 months. The production manager at High- lands Archery has already created an aggregate production plan, based on that information: Month 1 Month 2 Month 3 Month 4 Demand 10,000 bows 5,000 bows 30,000 bows 50,000 bows Produce 25,000 Produce 25,000 Produce 25,000 Produce 25,000 Managers production plan bows bows bows bows a. If Highlands Archery uses the manager's production plan, how many bows would be in inventory at the end of the fourth month? b. Following this plan, which month has the highest average inventory? c. If Highlands Archery pays $1 per bow to keep a bow in inventory for 1 month, what is the total inventory cost of the manager's plan, based on monthly ending inventory?
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