Question: The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturi…

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Jun 13, 2022

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Question: The Donald Fertilizer Company produces industrial chemical fertilizers. The projected manufacturi…

by | Jun 13, 2022 | Questions & Answers


The Donald Fertilizer Company produces industrial chemical
fertilizers. The projected manufacturing requirements (in gallons)
for the next four quarters are 90,000 ,

60,000 , 90,000 , and 140,000 respectively. A level workforce is
desired, relying only on anticipation inventory as a supply option.
Stockouts and backorders are to be avoided, as are overtime and
undertime.

a. Determine the quarterly production rate
required to meet total demand for the year, and minimize the
anticipation inventory that would be left over at the end of the
year. Beginning inventory is 00.

The quarterly production rate is gallons. (Enter your
response as an integer.)

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