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13 September, 05:57

The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600. What are planned purchases and OTB for the buyer?

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  1. 13 September, 07:43
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    The planned purchases are given as $34,500 while the value of OTB is $28,900

    Explanation:

    The Planned purchases is given as

    Planned Sales + Planned Markdowns + Planned End of Month Inventory - Planned Beginning of Month Inventory = Planned Purchases

    So here the planned sales are 25000

    The planned Reductions are 1500

    The End of Month inventory is 88000

    The Beginning of Month Inventory is 80000 So the value is given as

    25000+1500+88000-80000 = Planned Purchases

    Planned Purchases = 34500

    The OTB is given as

    OTB=Planned Purchases-Commitment

    OTB=34500-5600

    OTB=28900
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Home » Business » The following planned figures have been developed by a buyer for next month: sales = $25,000; reductions = $1,500; BOM stock = $80,000; EOM stock = $88,000; commitments already made for delivery during next month = $5,600.
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