If there were 50000 pounds of raw materials on hand on January 1, 140000 pounds are desired for inventory at January 31, and 530000 pounds are required for January production, how many pounds of raw materials should be purchased in January?

620,000 pounds

Explanation:

The computation of the number of pounds required raw material purchased in Jan is shown below:

Pounds of raw materials purchased is

= Pounds of material required for production + Desired Ending Inventory - Beginning Inventory

= 530,000 pounds + 140,000 pounds - 50,000 pounds

= 620,000 pounds

Hence, the number of pounds to be purchased is 620,000 pounds

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.