Question
Akai manufactures a specific auto part. Demand has been very strong and sales for the next year (2016) is expected to increase 30% from the
Akai manufactures a specific auto part. Demand has been very strong and sales for the next year (2016) is expected to increase 30% from the current annual sales of 900,000 units, charging $12 per part. Akai usually holds two months’ worth of sales as inventory in the year. The production and sales are evenly spread over the year. At the end of year(2015), the company is expected to have inventory of 150,000 units and the plan capacity of production is 1,100,000 units annually.
Prepare a production schedule for the next year (2016)?
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