If a Company Has Demand of 1,600 Units for the Month

question 44

Multiple Choice

If a company has demand of 1,600 units for the month of May and a beginning of 900 units, and if X_m = production in May and L_m = the number of lost sales in May, which of the following represent the material-balance constraint?

• A)X_m - I_m + 900 + L_m = 1,600
• B)X_m + I_m - 900 + L_m = 1,600
• C)X_m - I_m + 900 - L_m = 1,600
• D)-X_m - I_m + 900 - L_m = 1,600