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    5 Total For This Question: 12 Marks

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    Muhammad Salim Ullah Khan
    Davidson Reproductions produces tables and must create a 4-month production budget. Month 1 demand is 1200 tables, then decreases 10% each subsequent month but increases 5% based on the previous month. The ending stock each month should be 20% of the next month's sales up to 240 tables maximum. The starting stock is 100 tables for Month 1.

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    5 Total For This Question: 12 Marks

    Uploaded by

    Muhammad Salim Ullah Khan
    62 views1 page
    Davidson Reproductions produces tables and must create a 4-month production budget. Month 1 demand is 1200 tables, then decreases 10% each subsequent month but increases 5% based on the previous month. The ending stock each month should be 20% of the next month's sales up to 240 tables maximum. The starting stock is 100 tables for Month 1.

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    Davidson Reproductions produces tables and must create a 4-month production budget. Month 1 demand is 1200 tables, then decreases 10% each subsequent month but increases 5% based on the previous month. The ending stock each month should be 20% of the next month's sales up to 240 tables maximum. The starting stock is 100 tables for Month 1.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    62 views1 page

    5 Total For This Question: 12 Marks

    Uploaded by

    Muhammad Salim Ullah Khan
    Davidson Reproductions produces tables and must create a 4-month production budget. Month 1 demand is 1200 tables, then decreases 10% each subsequent month but increases 5% based on the previous month. The ending stock each month should be 20% of the next month's sales up to 240 tables maximum. The starting stock is 100 tables for Month 1.

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    © All Rights Reserved
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    Download as pdf or txt
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    5 Total for this question: 12 marks

    Davidson Reproductions Ltd produces tables. The production manager has collected the following
    information in order to produce a production budget for the next four months.

    1. Demand is expected to be 1200 tables in Month 1. This should reduce by 10% in Month 2,
    but thereafter increase by 5% each month, based on the demand for the previous month.

    2. The stock at the end of each month is to be maintained at a level of 20% of the following
    months sales but due to a storage constraint should not exceed 240 tables.

    3. The stock at the start of Month 1 is 100 tables.

    REQUIRED

    Produce a production budget for the next four months. Round up to the nearest whole table.

    Month 1 Month 2 Month 3 Month 4


    (tables) (tables) (tables) (tables)

    Sales .......................... .......................... .......................... ..........................

    Opening stock .......................... .......................... .......................... ..........................

    Closing stock .......................... .......................... .......................... ..........................

    Production .......................... .......................... .......................... ..........................


    (12 marks)

    ___
    12

    END OF QUESTIONS

    G/M112696/J03/ACC4

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