Question

In the context of managing fixed-quantity inventory systems, if the on-hand quantity is 700 units, the number of scheduled receipts is 150 units, and the number of backorders is 100 units, the inventory position (IP) would be _____. a. 450 units b. 650 units c. 750 units d. 950 units

Answer 1

c. 750 units

Step-by-step explanation:

The computation of the inventory position is shown below:

Inventory position (IP) = Number on‐hand inventory + Number of scheduled receipts - number of backorders

= 700 units + 150 units - 100 units

= 750 units

We simply added on hand inventory units, scheduled receipts units and deducted the back orders units so those correct units could find out