Using the Cut-And-Try Method for Aggregate Operations Planning, We Can

question 21

Multiple Choice

Using the cut-and-try method for aggregate operations planning, we can calculate the ending inventory and then calculate the safety stock as a percent of forecast demand.Suppose that the beginning inventory is 300, the production requirement in units of product is 1,350, demand forecast is 1,500, what is the ending inventory and percent safety stock?

• A)200 and 10%
• B)150 and 10%
• C)300 and 20%
• D)450 and 30%
• E)150 and 20%

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Definitions:

Physical Inventories

The process of counting by hand all physical stock items in a company to verify records and reports.