Answer :
Answer:
Total production requirements for 3 months = 665720 units
Explanation:
The opening inventory in July should have been 200000 * 0.8 = 160000 units
However there is a shortage of 10000 units as opening inventory is 150000 units.
- July sales are expected to be 200000 units.
- August sales will be = 200000 * 105% = 210000 units
- September Sales will be = 210000 * 105% = 220500 units
- October Sales will be = 220500 * 105% = 231525 units
The production requirement is to produce enough to match this month's sale along with 80% of next months sale.
The production requirement for 3 months ending 30 september will be,
- July = (200000-150000) + 0.8 * 210000 = 218000 units
- August = 210000 * 0.2 + 220500 * 0.8 = 218400 units
- September = 220500 * 0.2 + 231525 * 0.8 = 229320 units
Total production requirements for 3 months = 218000 + 218400 + 229320 = 665720 units
The company's production is referred to as the production or the manufacturing of the products and services to avail the comfort and fulfill the demand of the customers in the market.
Total production requirements for 3 months = 665720 units
The opening inventory in July should have been [tex]200000 \times 0.8 = 160000[/tex]units
However, there is a shortage of 10000 units as the opening inventory is 150000 units.
July sales are expected to be 200000 units.
August sales will be = [tex]200000 \times 105\% = 210000 \:units[/tex]
September Sales will be = [tex]210000 \times 105\% = 220500\: units[/tex]
October Sales will be = [tex]220500 \times105\% = 231525\: units[/tex]
The production requirement is to produce enough to match this month's sale along with 80% of next month's sale.
The production requirement for 3 months ending 30 September will be,
July =[tex](200000-150000) + 0.8 \times 210000 = 218000 \:units[/tex]
August = [tex]210000 \times 0.2 + 220500 \times 0.8 = 218400 \:units[/tex]
September = [tex]220500 \times 0.2 + 231525 \times 0.8 = 229320\: units[/tex]
Total production requirements for 3 months = 218000 + 218400 + 229320 = 665720 units
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