Deft is a product of the Digby company. Digby\'s sales forecast for Deft is 2071

Question

Deft is a product of the Digby company. Digby's sales forecast for Deft is 2071 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Deft's Production After Adjustment have to be in order to have a 10% reserve of units available for sale? Select: 1 2278 units 2057 units 2071 units 2264 unit Deft is a product of the Digby company. Digby's sales forecast for Deft is 2071 units. Digby wants to have an extra 10% of units on hand above and beyond their forecast in case sales are better than expected. (They would risk the possibility of excess inventory carrying charges rather than risk lost profits on a stock out.) Taking current inventory into account, what will Deft's Production After Adjustment have to be in order to have a 10% reserve of units available for sale? Select: 1 2278 units 2057 units 2071 units 2264 unit

Explanation / Answer

Calculate unit available for sale

sale unit = 2071

10% extra reserve unit = 2071*10%=207

Unit available for sale = (2071+207)=2278

So answer is a) 2278 units

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