Given situation as of January 1:
Number of shifts per work day = 1
Scheduled production/8.5-hour shift = __________* cases of 24 cans
Rated speed of production line = 1200 cans per minute
Scheduled number of working days/month = 22
Beginning inventory on Jan 1 = 88,333 cases
Sales forecast for January = 600,000 cases
Sales forecast for February = 580,000 cases
Sales forecast for March = 500,000 cases
* You must calculate the number and fill the blank above.
Using the information given above, answer these questions.
1. What is the projected finished goods inventory at end of March?
2. Will this schedule meet the forecasted demand for each of the 3 months? If not, which month(s) will be short and by how many cases?
3. If we experience 3.7% downtime every day, what will be the March ending inventory in cases?
4. If each case has an average value of $7.936, what is the value of a 10% reduction in the March inventory you calculated in #3, above?