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:

Monthly Interest Rate

The interest rate charged on a loan or realized on an investment over a month's time period.

Credit Policy

A set of guidelines that a company follows to determine credit terms for customers, which can impact cash flow and sales.

Monthly Interest Rate

The interest rate charged or paid on a loan or savings account calculated on a monthly basis.

Default Rate

The percentage of borrowers who fail to repay their loans or meet contractual obligations.