Question

Fill in the blanks to complete the sentence.

A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second quarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, __________units will need to be produced in the second quarter.

Answer 1

509 Units

Step-by-step explanation:

At second quarter,

safety stock = 10%

With 550 units, for target of the next quarter

Then, safety stock = [(550 ×( 10/100) ]

= 55 units.

Buy the remaining unit is 46, and the expected unit to be sold is 500

Then, units that will be neededto be produced in the second quarter. Is

= (55 + 500) -46

=509 units