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sukhopar [10]
4 years ago
11

A company expects to sell 500 units during the second quarter and 550 units in the third quarter. Currently, during the second q

uarter, they have 46 units on hand. If they desire safety stock of 10% of the next quarter's sales, 55 Blank 1 Blank 1 55, Incorrect Unavailable units will need to be produced in the second quarter.
Business
1 answer:
Gala2k [10]4 years ago
4 0

Answer:

509 units

Explanation:

The company should have a stock that is big enough to supply all of the second quarter demand (500 units) and 10% of the third quarter demand (55 units). Assuming that the company has 46 units on hand, the number of units that should be produced in the second quarter is:

n = 500+55-46\\n=509\ units

509 units will need to be produced in the second quarter.

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