Question

company policy is to maintain an ending finished-goods inventory equal to 40% of the following month's sales. on the basis of this information, how many units would the company plan to produce in july?

Answer 1

The company would plan to produce 49,200 units in July to maintain ending finished-goods inventory.

What is an inventory?

The term "inventory" describes the products and supplies that a company keeps with the intention of reselling, producing, or using them. Defining size, location, and shape of the stocked commodities is a major focus of inventory management. Prior to the normal and scheduled course of production and stocking of materials, it is necessary at various points within a facility or at several sites of a supply network. The concept of inventory, stock, or work in process (or work in progress) has been extended from manufacturing systems to service businesses and projects by defining the work in process.

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