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The Eugene Plant of Basic Computers Inc

question 75

Essay

The Eugene plant of Basic Computers Inc. (BCI) wants to develop a net requirements schedule for one model of microcomputers. The beginning inventory is 500 units, and they like to carry 50 units as safety stock. The estimated demand for the next 6 weeks is 200, 250, 300, 375, 400, and 600 units.
a.What would the net requirements be for Week 3?
b.What is the beginning inventory in Week 5?


Definitions:

Net Income

The net income of a company following the deduction of all taxes and expenses from the gross revenue.

Cash Payback Period

The period of time required for the return on an investment to "pay back" the sum of the original investment.

Amortization Period

The length of time over which an intangible asset is depreciated or an amount of money is amortized, typically reflecting the asset's useful life.

Net Cash Flows

is the total amount of money being transferred into and out of a business, indicating its financial health.

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