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In production scheduling LP problems, inventory at the end of this month is set equal to:

A) inventory at the end of last month - this month’s production + this month’s sales
B) inventory at the end of last month + this month’s production - this month’s sales
C) inventory at the end of last month + this month’s production - this month’s sales
D) inventory at the beginning of last month + last month’s production - last month’s sales

Respuesta :

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Answer:

Inventory at the end of last month + this month’s production - this month’s sales

Step-by-step explanation:

When accounting for inventory at the end of the current month, the first term that needs to be considered is the inventory carried over from the end of last month. Then, the number of units produced during the current month should be added, and finally, the inventory must be deducted by the total number of units sold during the current month. Therefore, the answer is:

Inventory at the end of last month + this month’s production - this month’s sales.

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