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Monthly Net Orders,Planned Production,and FG Inventory (New Product Introduction) (4)Production decreases output (2)Production increases outpuf 16000 (1)Increased demand causes back order 14000 12000 10000 8000 6000 (5)(Beginning of) 4000 Steady State 2000 (3)FG inventory shoots up 0 Month Month Month Manth Month Month Month Month Month -2000 -1 0 1 3 4 5 6 -4000 0 Net Orders --Planned Production -FG Inventory Exhibit 3.Production reaction to a new product introduction.The product was introduced in the last 2 weeks of Month 0.Monthly Net Orders, Planned Production, and FG Inventory (New Product Introduction) (4) Production decreases output 16000 14000 12000 10000 Month -2 Month -1 Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month (1) Increased demand causes back order (2) Production increases output (3) FG inventory shoots up (5) (Beginning of) Steady State 8000 6000 Sales Units 4000 2000 0 -2000 -4000 Net Orders Planned Production FG Inventory Exhibit 3. Production reaction to a new product introduction. The product was introduced in the last 2 weeks of Month 0. 6
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