Heedy Company Is Trying to Decide How Many Units of Merchandise

question 114

Multiple Choice

Heedy Company is trying to decide how many units of merchandise to order each month. The company policy is to have 20% of the next month's sales in inventory at the end of each month. Projected sales for August, September, and October are 30,000 units, 20,000 units, and 40,000 units, respectively. How many units must be purchased in September?

• A) 24,000
• B) 18,000
• C) 28,000
• D) 22,000

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Definitions:

Catastrophic

describes an event causing sudden and extensive damage or suffering; often unforeseeable and with significant impact.

Reliability

The degree to which a system, component, or process consistently performs its intended function under specified conditions over time.

Function Properly

To function properly means to operate or perform as intended or expected, usually referring to machines, systems, or organs within living organisms.

System Reliability

The measure of a system's ability to perform its required functions under stated conditions for a specified period of time.