Consider the following partial MPS record. Beginning inventory is 40 units. The firm uses a fixed order quantity of 70 units. What is the projected available amount in period 3?

A) 45
B) 15
C) 70
D) 50
E) 155

Question

Consider the following partial MPS record. Beginning inventory is 40 units. The firm uses a fixed order quantity of 70 units. What is the projected available amount in period 3?

A) 45 
B) 15 
C) 70 
D) 50 
E) 155

Quizplus · Accepted Answer

Period 1: Beginning inventory = 40, No order placed, Projected available = 40 
Period 2: Beginning inventory = 20, Order placed = 70, Projected available = 90 
Period 3: Beginning inventory = 0, Order placed = 70, Projected available = 70 - 70 = 0

Therefore, the projected available amount in period 3 is 0. The closest option is B) 15, but it is not the correct answer.

Consider the Following Partial MPS Record