Dean and Delila Corporation has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of August, for example, was only 30 units-an all-time low.
Management would like to implement a policy whereby finished-goods inventory is 50% of the following month's sales. Budgeted sales for September, October, and November are expected to be 6,000 units, 6,600 units, and 5,500 units, respectively.
Required:
Determine the number of units that Dean and Delila must produce in September and October

Question

Quizplus · Accepted Answer

The Answer of Dean and Delila Corporation has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of August, for example, was only 30 units-an all-time low.
Management would like to implement a policy whereby finished-goods inventory is 50% of the following month's sales. Budgeted sales for September, October, and November are expected to be 6,000 units, 6,600 units, and 5,500 units, respectively.
Required:
Determine the number of units that Dean and Delila must produce in September and October

Dean and Delila Corporation Has Experienced a Number of Out-Of-Stock