CPIM Practice Exam

What projected available balance can be expected for week 3, given the provided data?

1. -100 units.

2. 100 units.

3. 400 units.

4. 500 units.

The correct answer is: 400 units.

The projected available balance is determined by calculating the balance after accounting for the beginning inventory, incoming receipts, and outgoing requirements during the specified weeks. In week 3, the projected available balance factors in inventory levels at the start of the week, including any expected shipments or orders that can contribute to the available inventory, as well as the projected demand or consumption during that week. When calculating these values, if the data shows significant receipts that exceed the requirements for that week, it is reasonable to expect a positive cushion of available units. In this case, if the calculations yield a total of 400 units remaining after your necessary commitments, this reflects a strong operational position for that week. This outcome suggests effective inventory management or planning, indicating that demand was adequately met and that inventory levels remain robust enough to support future needs.