Question

For week 3, the MPS quantity is 120, the Forecast is 80, and Customer Orders are 55. Projected On-hand Inventory will be equal to

Answer 1

Projected on hand Inventory = 40

Step-by-step explanation:

Here, we will see which is larger out of Forecast Number and Customer Order Number, here, we will take larger value, as Forecast is 80, and Customer Orders are 55, hence, Forecast has to be taken,

Projected on hand Inventory = MPS Quantity - Forecast number

Projected on hand Inventory = 120 - 80

Projected on hand Inventory = 40