Question: On January 1, a materials analyst is asked to determine the number of units of Item AZ to be ordered for March delivery. The production

On January 1, a materials analyst is asked to determine the number of units of Item AZ to be ordered for March delivery. The production schedule calls for 4,800 units of AZ for January operations, 5,000 units for February, and 5,600 units for March. On January 1, the AZ inventory is 6,000 units, 3,800 units are on order for January delivery, and 4,600 units are on order for February delivery. The desired inventory level to begin second-quarter production is 80% of the January 1 inventory.
Required:
(1) Compute the quantity to be ordered for March delivery.
(2) If the planned usage occurs and outstanding orders are received on expected delivery dates, what is the number of units on hand (a) on March 1 and (b) on March 31?

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