The XYZ Firm has 66 units of SKU0001 available in inventory right now. The forec

Question

The XYZ Firm has 66 units of SKU0001 available in inventory right now. The forecast of demand for SKU001 is 20 units per week for the next four weeks. XYZ Firm's aggregate plan states that no production of SKU001 is planned for next week (the first week) or for the third week of this four week planning horizon. However, 30 units of SKU001 are scheduled for production during the second week and another 50 units are schedueled during the fourth week.

Question: How much SKU001 will be left in inventory at XYZ Firm, by the end of the fourth week?

Explanation / Answer

Expected Inventory leftover at the end of the fourth week = Total Demand forecast - Total Production + Opening inventory

= (20 + 20 + 20 + 20) - (0 + 30 + 0 + 50 ) + 66 = 66 units

Therefore 66 units of SKU001 will be left in inventory at XYZ firm by the end of the fourth week

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.