Concept explainers
a
Interpretation:
Recommended production rate if level strategy is adopted.
Concept Introduction:
A Level strategy refers to keeping the regular production level constant even when the demand varies among different periods. Under this strategy, the labor and other resources have equal requirement throughout the planning horizon. Therefore, it is easy to implement the level strategy.
b
Interpretation:
Level production rate with no ending inventory in month 4
Concept Introduction:
A Level strategy refers to keeping the regular production level constant even when the demand varies among different periods. Under this strategy, the labor and other resources have equal requirement throughout the planning horizon. Therefore, it is easy to implement the level strategy.
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