The Teddy Bear Company manufactures stuffed bears.The number of bears to be produced in the upcoming three months follows: $$\begin{array} { | l | l | }
\hline \text { Number of tedidy bears to be produced in July } & 12,000 \
\hline \text { Number of teddy bears to be produced in August } & 15,000 \
\hline \text { Number of teddy bears to be produced in September } & 10,000 \
\hline
\end{array}$$ Each bear requires 2 pounds of the plastic pellets used as stuffing.The company has a policy that the ending inventory of plastic pellets each month must be equal to 20% of the following month's expected production needs.How many pounds of plastic pellets does The Teddy Bear Company need to purchase in August?

Question

The Teddy Bear Company manufactures stuffed bears.The number of bears to be produced in the upcoming three months follows: $$\begin{array} { | l | l | } 
\hline \text { Number of tedidy bears to be produced in July } & 12,000 \
\hline \text { Number of teddy bears to be produced in August } & 15,000 \
\hline \text { Number of teddy bears to be produced in September } & 10,000 \
\hline
\end{array}$$ Each bear requires 2 pounds of the plastic pellets used as stuffing.The company has a policy that the ending inventory of plastic pellets each month must be equal to 20% of the following month's expected production needs.How many pounds of plastic pellets does The Teddy Bear Company need to purchase in August?

Quizplus · Accepted Answer

In August, the company needs 30,000 pounds (15,000 bears x 2 pounds) for production. The ending inventory for August should be 20% of September's needs, which is 4,000 pounds (10,000 bears x 2 pounds x 20%). The beginning inventory for August is 6,000 pounds (20% of August's needs: 15,000 bears x 2 pounds x 20%). Therefore, the purchase needed is 30,000 + 4,000 - 6,000 = 28,000 pounds.

The Teddy Bear Company Manufactures Stuffed Bears Each Bear Requires 2 Pounds of the Plastic Pellets Used