The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600.What are planned purchases and OTB for the buyer?
A) $18,500; $12,900
B) $34,500; $40,100
C) $18,500; $24,100
D) $34,500; $28,900
E) $26,500; $18,500

Question

Quizplus · Accepted Answer

Planned purchases = (Sales + Reductions + EOM stock) - BOM stock = ($25,000 + $1,500 + $88,000) - $80,000 = $34,500. OTB (Open-to-Buy) = Planned Purchases - Commitments = $34,500 - $5,600 = $28,900.

The Following Planned Figures Have Been Developed by a Buyer