A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on-hand inventory at the end of period 2?
A)21
B)1
C)12
D)20
E)impossible to say without more information

Question

Quizplus · Accepted Answer

The firm starts with 43 units. In period 1, they have 22 customer orders, leaving 21 units (43 - 22). In period 2, they have 17 customer orders, leaving 4 units (21 - 17). Therefore, the projected on-hand inventory at the end of period 2 is 4 units. However, since 4 is not an option, it seems there might be a mistake in the options provided.

A Firm Has 43 Units of a Certain Product on Hand