Question

With the annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined that each production run will be for 200 units. If production starts when the inventory level is at zero, how many units would actually be in the warehouse at the end of the first day of production? Round to the nearest unit.A. 12B. 20C. 30D. 40E. none of the above

Answer 1

C. 30

Step-by-step explanation:

given that:

Daily demand = 10 units

Starting Inventory Level = 40 units

Inventory Level at the end of the day if production starts = 0

The number of units that would actually be there in the warehouse at the end of first day of production = 40 units - 10 units

= 30 units

Therefore, There will be 30units in the warehouse at the end of the first day of production.