{"id":198989,"date":"2025-03-10T15:54:58","date_gmt":"2025-03-10T15:54:58","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=198989"},"modified":"2025-03-10T15:55:00","modified_gmt":"2025-03-10T15:55:00","slug":"a-firm-has-43-units-of-a-certain-product-on-hand","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/03\/10\/a-firm-has-43-units-of-a-certain-product-on-hand\/","title":{"rendered":"A firm has 43 units of a certain product on hand"},"content":{"rendered":"\n<p>A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on hand inventory at the end of period 2?<\/p>\n\n\n\n<p>A. 21<br>B. 1<br>C. 12<br>D. 20<br>E. 4<\/p>\n\n\n\n<p><mark style=\"background-color:rgba(0, 0, 0, 0)\" class=\"has-inline-color has-ast-global-color-6-color\"><strong>The correct answer and explanation is :<\/strong><\/mark><\/p>\n\n\n\n<p>To determine the <strong>projected on-hand inventory<\/strong> at the end of period 2, we follow these steps:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Given Data:<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Initial Inventory<\/strong>: 43 units<\/li>\n\n\n\n<li><strong>Forecasted Demand<\/strong>:<\/li>\n\n\n\n<li>Period 1: 20 units<\/li>\n\n\n\n<li>Period 2: 20 units<\/li>\n\n\n\n<li><strong>Customer Orders<\/strong>:<\/li>\n\n\n\n<li>Period 1: 22 units<\/li>\n\n\n\n<li>Period 2: 17 units<\/li>\n\n\n\n<li><strong>Planned Production<\/strong>: 80 units in period 3 (not relevant for period 2 calculations)<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Step-by-Step Calculation:<\/h3>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Period 1:<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Available Inventory at the Start = <strong>43<\/strong><\/li>\n\n\n\n<li>Customer Orders = <strong>22<\/strong> (since customer orders typically take priority over forecasted demand)<\/li>\n\n\n\n<li>Ending Inventory after Period 1 =<br>[<br>43 &#8211; 22 = 21<br>]<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Period 2:<\/strong><\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Beginning Inventory = <strong>21<\/strong> (from Period 1 ending)<\/li>\n\n\n\n<li>Customer Orders = <strong>17<\/strong><\/li>\n\n\n\n<li>Ending Inventory after Period 2 =<br>[<br>21 &#8211; 17 = 4<br>]<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Final Answer:<\/strong><\/h3>\n\n\n\n<p>The <strong>projected on-hand inventory at the end of period 2 is 4 units<\/strong>.<\/p>\n\n\n\n<p><strong>Correct Answer: E. 4<\/strong><\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Explanation:<\/strong><\/h3>\n\n\n\n<p>Projected on-hand inventory is calculated by tracking how much stock is available at the start of each period and subtracting the actual demand (customer orders).<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>The company starts with <strong>43 units<\/strong> in inventory.<\/li>\n\n\n\n<li>In period 1, <strong>22 units<\/strong> are shipped to fulfill customer orders. Since orders are lower than forecasted demand (20), we only subtract <strong>22<\/strong> from inventory, not the full 20 units forecast.<\/li>\n\n\n\n<li>This leaves <strong>21 units<\/strong> at the end of period 1.<\/li>\n\n\n\n<li>In period 2, customer orders are <strong>17 units<\/strong>, so we subtract that from <strong>21<\/strong>, leaving us with <strong>4 units<\/strong> in inventory at the end of period 2.<\/li>\n<\/ol>\n\n\n\n<p>Thus, the <strong>correct answer is 4 units (Option E)<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A firm has 43 units of a certain product on hand. Forecasts for the first two planning periods are 20 units each. A production quantity of 80 units is planned to be available in period 3. Customer orders are 22 for period 1 and 17 for period 2. What is the projected on hand inventory [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-198989","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/198989","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=198989"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/198989\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=198989"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=198989"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=198989"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}