There are 200 units in inventory at the start of week 1. What are the net requirements in week 4 if there is a scheduled receipt of 100 units every other week and a two week production lead time? 1 2 3 4 5
Gross Requirements 550 450 400 400 500
Scheduled receipts 100 0 100 0 100
Projected ending Inventory
Net Requirements
Planned Receipts 350 450
Planned Orders 350 300

a. 250
b. 300
c. 350
d. 400

a. 250

Explanation:

1 2 3 4

Gross Requirements 550 ___450 400 ___400

Scheduled receipts 100 0 100 ___ 0  

Beginning Inventory 200 100 100150

Net Requirements   250350 200250

Planned Receipts 350 450350 ___ 300

Projected Ending Inventory _100 100 150 50

Planned Orders 350 ___ 300300 0

The net requirement in week 4 is 250 units

Working

Formulas or calculations

Net Requirements = Gross requirements - Schedule receipts - Beginning Inventory

Projected Ending Inventory = PLanned receipt - Net requirements

Week 4

Net Requirements = Gross requirements - Schedule receipts - Beginning Inventory

PLacing values in the formula

Net Requirements = 400 - 0 - 150 = 250

answer; capital structure decision;