With an annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined that each production run will be for 200 units.If production starts when the inventory level is at zero, how many units would actually be in the warehouse at the end of the first day of production? (Round your answer to the nearest unit.)
A)12
B)20
C)30
D)40

Question

Quizplus · Accepted Answer

The production rate is 40 units per day, and the daily demand is 10 units. Therefore, at the end of the first day, the net increase in inventory is 40 - 10 = 30 units.

With an Annual Demand of 2,400 Units, Daily Demand of 10