A firm has 56 units of product X on hand

Marketing Dec 20, 2020

A firm has 56 units of product X on hand. Forecasts of demand are for 20 units per week. An MPS quantity of 100 units is planned to arrive in period 3. Customer orders are 24 for period 1, 18 for period 2, and 15 for period 3.

What is the projected on-hand inventory at the end of period 2?

Expert Solution

The answer is $12 units

	Unit
Period 1
Product X - Beginning	56 units
Less: Customer order vs Forecast, whichever is higher	24
Product X - Ending	32 units

Period 2
Product X - Beginning	32 units
Less: Customer order vs Forecast, whichever is higher	20
Product X - Ending	12 units

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