A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month. a. 100 b. 200 c. 150 d. 250

Question

Kennedi Randolph

Mathematics

31 August, 20:31

A company currently has no items in inventory. The demand for the next four months is 200, 400, 250, and 350 units. Assuming a level production rate of 350 units per month, determine the ending inventory at the end of the fourth month. a. 100 b. 200 c. 150 d. 250

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Houston Shelton · Answer 1

The total demand is: 200 + 400 + 250 + 350 = 1200

Production is 350 a month.

Multiply by the 4 months: 350 x 4 = 1400.

Now subtract the demand from the total production:

1400 - 1200 = 200 left for inventory.

The answer is b. 200