Given the forecast and booked orders shown in the table,and a beginning inventory of 20,what is the available to promise inventory for the first period? There are no LOT quantity constraints.

Question

Quizplus · Accepted Answer

To calculate the available to promise inventory for the first period, we need to subtract the forecast demand and booked orders from the beginning inventory. 
Beginning Inventory + Forecast demand - Booked orders = Available to promise inventory

For the first period: 
Beginning Inventory = 20 
Forecast demand = 40 
Booked orders = 50

Therefore, 
Available to promise inventory = 20 + 40 - 50 = 10

Option B) 10 is the correct answer.

Given the Forecast and Booked Orders Shown in the Table,and