Cake is a product of the Chester Company. Chester\'s sales forecast for Cake is
ID: 2556158 • Letter: C
Question
Cake is a product of the Chester Company. Chester's sales forecast for Cake is 1,420 in the Americas region. Chester wants to have an extra 10% on hand above their forecasted units 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 Cake's Fulfillment After Adjustment have to be in order to have a 10% reserve of units available for sale? All numbers in thousands (000).
1,420 units
1,192 units
1,562 units
1,334 units
Explanation / Answer
Total units would be the projected sales + 10% reserve stock
Total units = 1420 + (10%*1420)
= 1420 + 142
= 1562 unitd