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 quantity is available for commitment to new customers in either of the first two periods?

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Business

Reyna Cervantes

8 July, 14:13

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 quantity is available for commitment to new customers in either of the first two periods?

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Answers (1)

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Deon Garrett · Answer 1

Answer: 41 units

Explanation:

The in stock quantity of goods available before the first and second period is 43, the first two periods are estimated to produce 20 units each and 22 units are ordered.

For the first period the quantity available for commitment to new customers is 43+20-22=41

For the second period quantity available for commitment to new customers is the 41 brought forward plus 20 units estimated production less 17 units order, it's equal to 44.

Which means in either of the first two periods 41 units will be available.