Question: A ) . If the opening inventory is 5 0 0 units, demand is 8 0 0 units, and production is 7 0 0 units,

A). If the opening inventory is 500 units, demand is 800 units, and production is 700 units, what will be the ending inventory? (3 marks)
B). A production line is to run at 1000 units per month. Sales are forecast as shown in the following. Calculate the expected period-end inventory. The opening inventory is 500 units. All periods have the same number of working days (6 marks)
Period
1
2
3
4
5
6
Forecast
780
820
1030
1400
1000
880
Planned production
1000
1000
1000
1000
1000
1000
Planned inventory
500
720
900
870
470
470
590

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