MAC June 2007

Sparkly

Hi, can anyone help me, I think I must have left my brain in it's box this morning!

I'm trying to do task 1.1c on the MAC June 2007 paper.

My problem is working out the closing stock of tablets required. This data says that the policy is to keep sufficient closing stock of tablets to meet 5 days production in the following month. For month 1 I have tried working it out based on the forecast sales figure for month 2, and also using the production required figure for month 2 calculated in part (b) of the question, but I still can't get to the answer given of 468,000 tablets. I'm sure its probably something really simple I'm getting wrong but I just can't figure it out!

Any help gratefully received!

jilt

Hi Sparkly, I'll do my best to explain:

Policy is to keep sufficient closing stock of materials to meet 5 days production in the following month, in this case it's July

So July's production requirement after taking into account opening and closing stock is 117,000 packs for the month

117,000/20 (number of production days in month) = number produced per day
x 5 = 29250 packs to cover 5 days
x 16 (number of tablets in a pack) = 468,000 tablets

Hope that helps

Sparkly

Thanks Jill.
It appears my method was right - where I had gone wong was I had written a figure down incorrectly in part (a) of the question and had been using this figure which was why I couldn't get the right answer! At least I know I had the right approach!

Thanks for helping me out with this, I was going round in circles!