Question

Fierce is a product of the Ferris Company. Ferris's sales forecast for Fierce is 1,150 units, and they currently have 186 units on hand. Chester wants to have an extra 10% on hand above their forecasted units in case sales are better than expected, to avoid stocking out. Taking current inventory into account, what will Fierce's Fulfillment After Adjustment have to be in order to have a 10% reserve of units available for sale? All numbers in thousands (000).

A. 964 units
B. 1,079 units
C. 1,050 units
D. 1,014 units

Answer 1

To calculate the Fulfillment After Adjustment for Fierce, add the reserve of units to the forecasted units and subtract the current inventory. The correct answer is B. 1,079 units.

Step-by-step explanation:

To calculate the Fulfillment After Adjustment, we need to first calculate the 10% reserve of units.

Step 1: Calculate the 10% reserve of units: 1,150 units * 10% = 115 units.

Step 2: Add the reserve to the forecasted units: 1,150 + 115 = 1,265 units.

Step 3: Subtract the current inventory from the adjusted forecasted units: 1,265 - 186 = 1,079 units.

Therefore, Fierce's Fulfillment After Adjustment should be 1,079 units. The correct answer is B. 1,079 units.