A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month.
A) 100
B) 150
C) 200
D) 250

Question

Quizplus · Accepted Answer

The total demand over four months is 200 + 400 + 250 + 350 = 1200 units. With a production rate of 350 units per month over four months, the total production is 350 * 4 = 1400 units. The ending inventory is the total production minus the total demand, which is 1400 - 1200 = 200 units.

A Company Currently Has No Items in Inventory