Question

# In aggregate production planning, given the following:         BEGINNING     PLANNED       EXPECTED   ENDING MONTH   INVENTORY (units)...

In aggregate production planning, given the following:

BEGINNING     PLANNED       EXPECTED   ENDING

MONTH   INVENTORY (units) PRODUCTION (units)     DEMAND (units)   INVENTORY (units)

Jan.    0    150 95

Feb.      150 175

Mar.        150    140

Based on these information, what is the ending inventory (in units) at the end of February?

Beginning inventory for any period is the ending inventory for previous period

Ending inventory for any period can be calculated by following method

Ending inventory for the period = Beginning Inventory + Planned Production – expected demand

 Month Beginning Inventory (Units) Planned Production (Units) Expected Demand (Units) Ending Inventory (units) Jan 0 150 95 55 Feb 55 150 175 30 Mar 30 150 140 40

Therefore the ending inventory (in units) at the end of February is 30 units

Formulas used in Excel Calculation:

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