Using the cut-and-try method for aggregate operations planning, we can determine the production requirement in units of product. If the beginning inventory is 500 units, the demand forecast is 1,000, and the necessary safety stock is 10 percent of the demand forecast, which of the following is the production requirement?
A) 1,000
B) 600
C) 550
D) 450
E) 100

Question

Quizplus · Accepted Answer

The production requirement can be calculated as follows: Demand forecast (1,000) + Safety stock (10% of 1,000 = 100) - Beginning inventory (500) = 600 units.

Using the Cut-And-Try Method for Aggregate Operations Planning, We Can