In production scheduling LP problems, inventory at the end of this month is set equal to
A)inventory at the end of last month + this month's production - this month's sales.
B)inventory at the beginning of last month + this month's production - this month's sales.
C)inventory at the end of last month + last month's production - this month's sales.
D)inventory at the beginning of last month + last month's production - last month's sales.

Question

Quizplus · Accepted Answer

Inventory at the end of this month is calculated by taking the inventory at the end of the last month, adding this month's production, and subtracting this month's sales. This formula ensures that the new inventory level reflects recent production and sales activities.

In Production Scheduling LP Problems, Inventory at the End of This