Cake is a product of the Chester Company. Chester\'s sales forecast for Cake is
ID: 2721386 • Letter: C
Question
Cake is a product of the Chester Company. Chester's sales forecast for Cake is 1,439 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).
1,439 units
1,583 units
1,478 units
1,334 units
Explanation / Answer
Answer-
1,583 units
If we use the current inventory then the answer is 1439
Particulars Units sales forecast for Cake 1439 Add- Reserve 10% of 1439 units 144 Cake's Fulfillment After Adjustment have to be in order to have a 10% reserve of units available for sale 1583