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
Accepted Solution
A:
The total demand is: 200 + 400 + 250 + 350 = 1200Production 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