For the next sik months, Kurtz Company projects the following information (in un

Question

For the next sik months, Kurtz Company projects the following information (in units) July. Aug, Sept Oct. Nov Dec Retail demand 300 300 450 450 600 600 Dealer demand 600 750 900 1,050 ,200 1,350 Shop capacity 1,500 1,500 1,500 1,500 1,500 1,500 Painting capacity Demand drives production for that month and cannot be carried over from one month to another. Retail customers are satisfied first 050 1,050 1,050 1,800 1,800 1,800 urThe production for July is projected to be tion A. 1,500 units B. 1,050 units C. 900 units O D. 300 units

Explanation / Answer

Production for July = Lower of a) Demand b) Shop Capacity and c) Painting Capacity

a) Demand = 300+600 =900 units

b) Shop Capacity = 1500 units

c) Painting Capacity = 1050 units

Hence production for July is projected to be 900 units

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