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Santori Corporation has recently experienced a number of out-of-stock situations because of inadequate inventory levels. Here in information about their inventory levels and their budgeted
| Santori Corporation has recently experienced a number of out-of-stock situations because of inadequate inventory levels. Here in information about their inventory levels and their budgeted sales: | ||||||
| Month | Ending Inventory (units) | Budgeted Sales (units) | ||||
| May | 50 | |||||
| June | 5,000 | |||||
| July | 5,600 | |||||
| August | 5,500 | |||||
| Inventory Policy: | ||||||
| Ending inventory each month as percent of next month's sales: | 20% | |||||
| Required: | ||||||
| Determine the number of units that Santori must produce during the month of June, and the number of units Santori must produce during the month of July, in order to maintain the desired inventory levels at the end of each of those two months. | ||||||
| Santori Corporation has recently experienced a number of out-of-stock situations because of inadequate inventory levels. Here in information about their inventory levels and their budgeted sales: | ||||||
| Month | Ending Inventory (units) | Budgeted Sales (units) | ||||
| May | 50 | |||||
| June | 5,000 | |||||
| July | 5,600 | |||||
| August | 5,500 | |||||
| Inventory Policy: | ||||||
| Ending inventory each month as percent of next month's sales: | 20% | |||||
| Required: | ||||||
| Determine the number of units that Santori must produce during the month of June, and the number of units Santori must produce during the month of July, in order to maintain the desired inventory levels at the end of each of those two months. | ||||||
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