Question:easy

Consider the aggregate planning problem for a toy car manufacturing organization whose demand at a plant is as follows:

MonthSeptemberOctoberNovemberDecember
Demand (in units)80006500105009500

The organization has ONLY the following options available for aggregate planning to meet the demand: (1) in-house production, (2) subcontracting, and (3) inventory holding. Assume that the quantity subcontracted in a given month is available in the same month.

A part of their optimal solution is as follows:
Inventory at the end of October = 1500 units
Units produced in-house in November = 8000 units
Units subcontracted in November = 1000 units

The inventory at the end of November is ______ units (in integer).

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Add opening stock, in-house production and subcontracted units for November, then subtract November's demand to get the closing stock.
Updated On: Aug 5, 2026
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Correct Answer: 0

Solution and Explanation

Step 1: Understanding the Concept:
In aggregate planning, the stock left over at the end of a month becomes the opening stock for the next month.
So the ending inventory of October, 1500 units, is the beginning inventory for November.
We need to combine this opening stock with everything made or bought in November, and then compare the total against November's demand.

Step 2: Key Formula or Approach:
\[ \text{Ending Inventory}_t = \text{Beginning Inventory}_t + \text{Production}_t + \text{Subcontracting}_t - \text{Demand}_t \]

Step 3: Detailed Explanation:
For November: beginning inventory = 1500 units, in-house production = 8000 units, subcontracted units = 1000 units (available the same month), and demand (from the table) = 10500 units.
Total supply available in November:
\[ \text{Total Supply} = 1500 + 8000 + 1000 = 10500 \text{ units} \]
Comparing this with demand:
\[ \text{Ending Inventory} = 10500 - 10500 = 0 \text{ units} \]

Final Answer:
Total supply exactly matches demand this month, so the closing inventory is nil. \[ \boxed{0} \]
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