Question

With an annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined that each production run will be for 200 units. If production starts when the inventory level is at zero, how many units would actually be in the warehouse at the end of the first day of production? (Round your answer to the nearest unit.)

Answer 1

30 units

Step-by-step explanation:

Calculation for how many units would actually be in the warehouse

Using this formula

Number of units=Daily production rate-Daily demand

Let plug in the formula

Number of units= 40 units - 10 units

Number of units= 30 units

Therefore the numbers of units that would actually be in the warehouse at the end of the first day of production is 30 units