In a multi-period production scheduling application,which equation describes the relationship between demand,production,and inventory?
A)productiont + demandₜ - inventoryₜ₋₁ = inventoryₜ
B)productiont + demandₜ + inventoryₜ₋₁ = inventoryₜ
C)productiont - demandₜ₋₁ + inventoryₜ₋₁ = inventoryₜ
D)productiont - demandₜ + inventoryₜ = inventoryₜ₋₁
E)productiont - demandₜ + inventoryₜ₋₁ = inventoryₜ

Question

Quizplus · Accepted Answer

The correct equation that describes the relationship between demand, production, and inventory in a multi-period production scheduling application is: production at time t minus demand at time t plus inventory at time t-1 equals inventory at time t. This equation accurately reflects how current production and previous inventory levels meet current demand to result in the new inventory level.

In a Multi-Period Production Scheduling Application,which Equation Describes the Relationship