1. Complete the history portion of the Elm Co. sales and operations planning spreadsheet given below. Inventory is valued at $700 per unit. The actual inventory at the end of September was 150 units

Elm Co.Sales and Operations Planning Spreadsheet
		History
		Oct	Nov	Dec
Sales
Forecast	(in millions $)	0.8	0.85	0.9
	(in units)	800	850	900
Actual	(in units)	300	400	200
difference	month
difference	cumulative
Operations
Plan	(in units)	800	800	800
	(in employees)	6	8	8
Number working days/month		23	19	19
Actual	(in units)	708	802	800
difference	month
difference	cumulative
Inventory
Plan	(in units)
	(in $1000)
Actual	(in units)	122	73	76
days of supply

1. What is the cumulative difference of actual sales and forecast sales (in units) in December?

2. What is the cumulative difference of production plan and actual production (in units) in December?

3. The actual inventory at end of December is -76 (so these are back ordered items). What is the main reason for this shortage? a. too many employees quit b. too many items were found defective c. sales forecasts and actual sales were different d. production plan and actual production were different