Question
Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: March 3,250
Bambino Sporting Goods makes baseball gloves that are very popular in the spring and early summer season. Units sold are anticipated as follows: |
March | 3,250 |
April | 7,250 |
May | 11,500 |
June | 9,500 |
31,500 | |
If seasonal production is used, it is assumed that inventory will directly match sales for each month and there will be no inventory buildup. | ||||||||||||||
The production manager thinks the preceding assumption is too optimistic and decides to go with level production to avoid being out of merchandise. He will produce the 31,500 units over 4 months at a level of 7,875 per month.
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