Carrying charges rather than risk lost profits on stock out

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Reference no: EM131180070

Cake is a product of the Chester Company. Chester's sales forecast for Cake is 1,439 in the Americas region. Chester wants to have an extra 10% on hand above their forecasted units 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 Cake's Fulfillment After Adjustment have to be in order to have a 10% reserve of units available for sale? All numbers in thousands (000).

1,439 units

1,583 units

1,478 units

1,334 units

Reference no: EM131180070

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