Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.

-Use Table 11.1 to answer this question. After scoring a terrific deal on tortillas, Big Truck Tacos decides to produce 120 tacos in weeks 1, 2, and 3. What is their projected on-hand inventory for week 4?
A) 55
B) 65
C) 75
D) 85

Question

Table 11.1
Big Truck Tacos has developed the following forecast of demand and accepted orders for their holiday tacos as they enter the Taco Festival Season. They enter the planning period with 65 holiday tacos in inventory as shown in Week 0.
 
-Use Table 11.1 to answer this question. After scoring a terrific deal on tortillas, Big Truck Tacos decides to produce 120 tacos in weeks 1, 2, and 3. What is their projected on-hand inventory for week 4?
A) 55 
B) 65 
C) 75 
D) 85

Quizplus · Accepted Answer

To calculate the projected on-hand inventory for week 4, we need to calculate the total demand for weeks 1, 2, 3, and 4 and subtract the total number of tacos produced.

Total demand for weeks 1, 2, 3, and 4 = 140 + 100 + 110 + 120 = 470

Total number of tacos produced in weeks 1, 2, and 3 = 120 x 3 = 360

So the projected on-hand inventory for week 4 = Inventory at the beginning of week 0 + Total produced - Total demand up to and including week 4

Projected on-hand inventory for week 4 = 65 + 360 - 470 = 75

Therefore, the answer is C) 75.

Table 11.1 Big Truck Tacos Has Developed the Following Forecast of Demand