Suppose that the requirements (in gallons) for the next four quarters are revised to 140 comma 000 , 60 comma 000 , 90 comma 000 , and 90 comma 000 respectively. If total demand is the same, what level of production rate is needed now, using the same strategy as above? The new quarterly production rate is nothing gallons. (Enter your response as an integer.)

Question

Caitlin Warner

Business

30 January, 09:11

Suppose that the requirements (in gallons) for the next four quarters are revised to 140 comma 000 , 60 comma 000 , 90 comma 000 , and 90 comma 000 respectively. If total demand is the same, what level of production rate is needed now, using the same strategy as above? The new quarterly production rate is nothing gallons. (Enter your response as an integer.)

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Answers (1)

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Beau Terrell · Answer 1

Solution and Explanation:

As per the given dа ta:

Quarter 1 = 90000, Quarter 2 = 90000, Quarter 3 = 60000, Quarter 4 = 140000

a. Quarterly production rate is calculated as follows:

Q = (90000 + 90000 + 60000 + 140000) divide by 4

after calcualting the above equation, we get, = 95000 gallons per quarter tin order to meet the demand.

b. Anticipation inventory:

1 st quarter = 95000 minus 90000 = 5000 gallons

2 nd quarter = 95000 minus 90000 = 5000 + 5000 in prior quarter = 10000 gallons

3 rd quarter = 95000 minus 60000 = 35000 + 10000 in prior quarters = 45000 gallons

4th quarter = 140000 minus 450000 minus 95000 = 0 gallons.