Given the Forecast and Booked Orders Shown in the Table

question 15

Multiple Choice

Given the forecast and booked orders shown in the table, and a beginning inventory of 120, what is the projected ending inventory for period 4? The company operates with a lot size of 144. $$\begin{array} { | l | c | c | c | c | } \hline \text { Period } & 1 & 2 & 3 & 4 \\\hline \text { Forecasted Demand } & 500 & 450 & 400 & 600 \\\hline \text { Booked Orders } & 520 & 400 & 325 & 450 \\\hline \text { Projected ending inventory } & & & & \\\hline \text { Master production schedule } & & & & \\\hline \text { Available to Promise } & & & & \\\hline\end{array}$$

• A)34
• B)38
• C)46
• D)22

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Definitions:

Own-Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in its own price, with higher elasticity indicating greater sensitivity.

Brand of Shoes

A specific make or line of footwear identified by a unique name or symbol, often associated with certain quality, style, or prestige.

Elastic

Refers to the responsiveness of the quantity demanded or supplied of a product to changes in its price.

Decreasing Prices

A situation where the cost of goods or services is becoming lower over time.