Odejayi Ltd produces computer desks. The production manager has collected the following information in order to produce
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Odejayi Ltd produces computer desks. The production manager has collected the following information in order to produce a production budget for the next four months:
(i) Demand is expected to be 320 desks in April 2018. This should increase by 25% in May and by 20% in the following two months, based on the demand for desks in the previous month.
(ii) Stock at the end of each month is to be maintained at a level of 25% of the following month’s forecast sales.
(iii) The stock at the start of April is 200 desks.
(iv) Sales in August are expected to be 600 desks.
Produce a production budget for the period ending 31 July 2018. Round up, if necessary, to the nearest desk.
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