Prepare a Production Budget of Mercey $($Pty$)$ LTD for $2020$ financial year.

Budgeted units to be sold in each quarter for year $2020$ and $2021$ are as follows:

Quarter $1-16000$

Quarter $2-17000$

Quarter $3-19000$

Quarter $4-22000$

$($a$)$ Assume that company policy requires $20\%$ of the next quarter$$s sales in ending inventory and that beginning inventory for the first quarter of the year was $1920.(5$ MARKS$)$

$($b$)$ Critically discuss and explain the importance of budget in the supply chainmanagement. $(10$ MARKS$)$