Possibility of excess inventory carrying


Drum is product of the Digby company. Digby's sales forecast for Drum is 2067 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 Drum's Production After Adjustment have to be in order to have a 10% reserve of units available for sale?

2274 units

2067 units

2260 units

2053 units

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Business Management: Possibility of excess inventory carrying
Reference No:- TGS0869333

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