Question

Based upon Booked Orders and Sales Predictions, the expected finished goods requirements is 550 units over the planning period. We currently have the 450 units of Finished Goods Products in Inventory, and have already scheduled for 150 units to be produced within the planning period. How many units of product A should we include on future Planned Production Orders? Group of answer choices

Answer 1

Answer: 0 units

Explanation:

Future Planned Production Orders = Expected goods requirement - Finished goods in inventory - Schedule production

= 550 - 450 - 150

= -50 units

Include no units because the finished goods and the scheduled production make up the requirement for the period.