Abrams Bottling Company sells fruit-flavored colas, sold in cartons. Estimated sales in cartons for May, June, and
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Abrams Bottling Company sells fruit-flavored colas, sold in cartons. Estimated sales in cartons for May, June, and July are 1,000, 3,000 and 5,000 respectively. The price is forecasted at $5 per carton. Abrams requires that finished goods ending inventory be 20% of the next month's sales. Inventory was 500 cartons on May 1. Each carton requires 12 oz of fruit syrup and 130 oz of carbonated water. Materials ending inventory should be 10% of the next month's production needs. May 1 materials inventory met that requirement.
Calculate the budgeted volume of carbonated water to be purchased in May?
Related Book For
Supply Chain Focused Manufacturing Planning and Control
ISBN: 978-1133586715
1st edition
Authors: W. C. Benton
Posted Date: