Consider the following partial MPS record. Beginning inventory is 40 units. The firm uses a fixed order quantity of 70 units. What is the projected available amount in period 5?

A)70
B)50
C)10
D)40
E)220

Question

Consider the following partial MPS record. Beginning inventory is 40 units. The firm uses a fixed order quantity of 70 units. What is the projected available amount in period 5?

A)70 
B)50 
C)10 
D)40 
E)220

Quizplus · Accepted Answer

Period 1: Beginning Inventory 40 units + MPS 70 units - Forecast 50 units = Projected Available 60 units.

Period 2: Beginning Inventory 0 units + MPS 70 units - Forecast 5 units = Projected Available 65 units.

Period 3: Beginning Inventory 0 units + MPS 70 units - Forecast 40 units = Projected Available 30 units.

Period 4: Beginning Inventory 0 units + MPS 70 units - Forecast 25 units = Projected Available 45 units.

Period 5: Beginning Inventory 0 units + MPS 70 units - Forecast 50 units = Projected Available 20 units.

Therefore, the projected available amount in period 5 is 20 units, which is option C.

Consider the Following Partial MPS Record