The Bloomington Bicycle Bearing company wishes to use a level output plan to plan for the rest of the year. Here is the forecasted demand for all bearing types: Month Demand May 800 Jun 650 July 720 August 690 Sept 530 Oct 610 Nov 630 Dec 610 If the beginning inventory is 300 units and the desired ending inventory at the end of December is 500 units, how many units will be in inventory at the end of August

August ending Inventory 160 units

Explanation:

It wishes a level output AKAK same production over the rest of the year

total demand:

we add up the demand of the moths and our desired ending inventory

then we subtract the beginning and divide over the eight months

800 + 650 + 720 + 690 + 530 + 610 + 630 + 610 + 500 desired ending - 300 beginning = 5,440

We divide by 8 = 680 per month

Now we can do the budget up to August to solve for the ending inventory

Ending = Beginning + Production - Demand (consumed)

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