Question

What is the ending inventory for period 8 when the MPS is 0 units?

The ending inventory for period 7 was 89 units. The forecasted demand for period 7 was 120 units while, for period 8, it is 20 units. The customer order for period 8 is 25 units. Select one:


a. 54 units

b. 64 units

c. 89 units

d. 69 units

Answer 1

Ending inventory = 64 units

Step-by-step explanation:

Given:

Ending inventory for period 7 = 89 units

Forecast demand for period 7 = 120 units

Forecast demand for period 8 = 20 units

Customer order for period 8 = 25 units

MPS = 0 units

Computation:

Ending inventory = Ending inventory for last period + MPS - maximum from (Forecast demand for Current period ,Customer order for current period)

Ending inventory = 89 units + 0 - maximum from (20 , 25)

Ending inventory = 89 units -25 units

Ending inventory = 64 units