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

question 4

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, and 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:

Depletion

The allocation of the cost of natural resources over their useful life, typically related to mining, quarrying, drilling, or timber operations.

Amortization

The gradual write-off of the cost of an intangible asset over its useful life, similar to depreciation for tangible assets.

Trademark

A name, term, or symbol used to identify a business and its products.

Business

An organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of generating profits.