9-14 Budgeted Production Arpo Products, Inc. has developed the following sales f

Question

9-14 Budgeted Production Arpo Products, Inc. has developed the following sales forecast for its most popular product, Product X, covering the months of April through July Sales Forecast-Product X April May June July 20,000 units 22,000 units 24,000 units 25,000 units Arpo's inventory policy specifies that the inventory on hand at the beginning of each month should equal one-half of that month's projected sales Given this information, develop a master production schedule for Arpo for April, May and June

Explanation / Answer

Prepare Production schedule :

April May June Sales unit 20000 22000 24000 Add: Desired ending inventory 11000 12000 12500 Total needs 31000 34000 36500 Less: Beginning inventory (10000) (11000) (12000) Production units 21000 23000 24500

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