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  • Jan 20, 2009, 01:50 PM
    askme42
    Calculate inventory requirements
    Company X wants to sell 160 units in April and 120 units in May.

    Company X keeps 15% of next month's sales as ending inventory.

    How many units should Company X produce in April?
  • Jan 20, 2009, 02:48 PM
    asastring

    Company sells 160 units in April but has 24 units from March for April. Production for April is 160 - 24 equals 136 plus 15% of May or 18 units. Production for April is 136 plus 18 or 154.

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