Question

SL Seqirus is the worlds largest manufacturer of flu vaccine. Their largest plant is in Holly Springs, NC. The table below gives the total number of vaccine doses (in millions) that CSL must manufacture each month to satisfy its promised shipments. CSL must also have 40 million doses on hand in inventory at the end of Julv.

April May June July
Forecasted Demand 45 60 40 55
Ending Inventory Requirement


The Holly Springs plant uses a LEVEL production plan. How many doses (in millions) should the plant manufacture in each of the 4 months to meet forecasted demand and the ending July inventory requirement?

Answer 1

To satisfy the forecasted demand and ending July inventory requirement with a level production plan, the Holly Springs plant should manufacture 60 million flu vaccine doses each month from April through July.

Step-by-step explanation:

To determine how many doses of flu vaccine the Holly Springs plant should manufacture each month to meet the forecasted demand and the ending July inventory requirement, we need to consider the demand for each month and the desired ending inventory. The plant aims to have a level production plan, meaning they will produce the same amount each month.

The forecasted demands for April, May, June, and July are 45, 60, 40, and 55 million doses, respectively. Additionally, there is a requirement to have 40 million doses in inventory at the end of July.

First, add up the total demand for the four months and the ending inventory requirement: 45 + 60 + 40 + 55 + 40 = 240 million doses. Since the production should be equal each month, divide this total by 4,

which gives us 60 million doses per month. This is the number of doses the Holly Springs plant should manufacture each month to meet the requirements.