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

question 45

Short Answer

Using the cut-and-try method for aggregate operations planning we can determine the production requirement in units of product.If beginning inventory is 4,000 units,the demand forecast is 2,900 units and the required safety stock is 10% of the demand forecast,what is the production requirement?

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Definitions:

Net Realizable Value

The estimated selling price of an item in the ordinary course of business minus any costs associated with the sale or disposal of the item.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of a company's accounts receivable that may not be collectible.

Gross Accounts Receivable

The total amount owed by customers to a business for goods or services provided without deducting any allowance for doubtful accounts.

Contra-Revenue Account

An account that decreases the gross amount of revenue reported on the financial statements, such as sales returns, discounts, and allowances.