Answer:
700 units per month
Explanation:
Considering the demand for the next for months and the ending inventory required for the last month, the total number of units needed is:
[tex]U_n=500+800+900+300+400\\U_n=2900\ units[/tex]
Since the company already has 100 items in inventory, the number of total units the company should produce is:
[tex]U_p=2900-100\\U_n=2800\ units[/tex]
The production rate for the next four months is given by:
[tex]r=\frac{2800}{4}\\r= 700\ units/month[/tex]
Check if that level of production satisfies each month's demand:
[tex]\begin{array}{cccc}\ &Required&Inventory\\month\ 1&500&800\\month\ 2&800&1000\\month\ 3&900&900\\month\ 4&300&700\end{array}[/tex]
