mac - closing stock

meibaker

how to work out this closing stock
forecast sales for A
nov 150,000
dec 160,000
A is sold for £8 per game
the policy is to keep sufficient closing stock to meet 5 days sales in the following month
so what's the closing stock for Nov,
thank you1

SandyHood

Dec Sales 160,000
31 days in December

Average sales per day: 5161.29
So 5 days stock = 25,806 units

meibaker

SandyHood wrote: »

Dec Sales 160,000
31 days in December

Average sales per day: 5161.29
So 5 days stock = 25,806 units

hi sandy:
that's what i thought the answer is, but model answers closing stock is 40,000.
not sure where did i go wrong.
by the way, this is december past exam 2007, 1.1 please can you have a look please!
thank you!

A-Vic

• Each machine can operate for a maximum of two 7.5 hour shifts a day for 20 days a month.

it tells you the production days

so the closing stock for the month of december for 5 days will be:-

Forecast Sales (Units) Ybox Siny
• Month 3, November 2007 150,000 400,000
• Month 4, December 2007 160,000 400,000

y box = 160,000/20 x 5 = 40,000

siny = 400,000/20 x 5 = 100,000

the factory only works 20 days a month so can only produce for that amount of days.

hope this helps

meibaker

A-Vic wrote: »

• Each machine can operate for a maximum of two 7.5 hour shifts a day for 20 days a month.

it tells you the production days

so the closing stock for the month of december for 5 days will be:-

Forecast Sales (Units) Ybox Siny
• Month 3, November 2007 150,000 400,000
• Month 4, December 2007 160,000 400,000

y box = 160,000/20 x 5 = 40,000

siny = 400,000/20 x 5 = 100,000

the factory only works 20 days a week so can only produce for that amount of days.

hope this helps

ahhh, now i understand. i need to read my question more carefully next time! quite tricky tho!
thanks a vic

A-Vic

welcome