The following planned figures have been developed by a buyer for next month: sales = $100,000; reductions = $7,000; EOM stock = $250,000; BOM stock = $300,000; commitments for delivery during next month = $15,000.What are planned purchases and OTB for the buyer?
A) $57,000; $42,000
B) $157,000; $142,000
C) $57,000; $72,000
D) $39,000; $54,000
E) $175,000; $412,000

Question

Quizplus · Accepted Answer

Planned Purchases = Sales + EOM Stock + Reductions - BOM Stock = $100,000 + $250,000 + $7,000 - $300,000 = $57,000. OTB (Open to Buy) = Planned Purchases - Commitments = $57,000 - $15,000 = $42,000.

The Following Planned Figures Have Been Developed by a Buyer