With an Annual Demand of 2,400 Units, Daily Demand of 10

question 49

Multiple Choice

With an annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined that each production run will be for 200 units.If production starts when the inventory level is at zero, how many units would actually be in the warehouse at the end of the first day of production? (Round your answer to the nearest unit.)

• A)12
• B)20
• C)30
• D)40

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Definitions:

Overtime

Additional time worked by employees beyond their standard hours, often compensated at a higher pay rate.

Subcontracting

The practice of assigning or outsourcing part of the obligations and tasks under a contract to another party known as a subcontractor.

Stockouts

Instances when items are not available for sale due to insufficient stock.

Aggregate Planning

A production planning method that determines the necessary resources to meet projected demand over a future period, typically medium-term.