Question

An aggregate plan shows inventory at the end of May =800 units Forecast demand for June =1200 units Production output expected during June =1100 units. What is the expected inventory at the end of June? Multiple Choice

a. 1100 units
b. 200 units
c. 100 units
d. 700 units

Answer 1

The expected inventory at the end of June is 700 units.

Step-by-step explanation:

To find the expected inventory at the end of June, we need to calculate the net inventory change. The net inventory change is equal to the production output minus the forecast demand. In this case, the production output expected during June is 1100 units and the forecast demand for June is 1200 units. So the net inventory change would be -100 units.

Therefore, the expected inventory at the end of June would be the inventory at the end of May (800 units) plus the net inventory change (-100 units), which is equal to 700 units.

Therefore, the correct answer is d. 700 units.