One plant produces a finished product. Assume the required safety stock is 200 for the finished product and the current stock of the finished product is 100. If the plant receives a customer order for 200 of FG##, please determine the quantities of the finished product to be produced.
Safety stock is 200 units. However, the current stock is 100 units. This means that the safety stock is below its required level. In this case we need to fulfill the demand and the safety stock requirement. Thus the quantity of finished goods will be customer order + safety stock requirement. That is 200 + 100 = 300 units.
One plant produces a finished product. Assume the required safety stock is 200 for the finished...
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