Chapter 8, Problem 31E

Trumbull Co. plans to produce 100,000 toy cars during September. Planned production for October is 125,000 cars. Sales are forecasted at 90,000 toy cars for September and 120,000 toy cars for October. Each toy car requires four wheels. Trumbull’s policy is to maintain 10 percent of the next month’s production in inventory at the end of a month. How many wheels should Tram bull purchase during September?

1. a. 195,000
2. b. 112,500
3. c. 102,500
4. d. 410,000