A firm has 43 units of a certain product on hand.Forecasts for the first two planning periods are 20 units each.A production quantity of 80 units is planned to be available in period 3.Customer orders are 22 for period 1 and 17 for period 2. What is the projected on hand inventory at the end of period 2?
A)21
B)1
C)12
D)20
E)4

Question

Quizplus · Accepted Answer

The initial inventory is 43 units. After fulfilling customer orders of 22 units in period 1, 21 units remain. In period 2, fulfilling 17 units leaves 4 units. Since the forecast is 20 units for each period, the projected on-hand inventory at the end of period 2 is 1 unit (21 - 20 = 1).

A Firm Has 43 Units of a Certain Product on Hand.Forecasts