Forecast matches up with capacity of manufacturing facility

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Your second objective is to prepare a forecast for the next 12 months. It is important that your forecast matches up with the capacity of your manufacturing facility. On average the plant operates 8 hours per day 5 days a week with a two week shut down in July for annual maintenance. On average it takes 1.25 hours to make a piece of upholstered furniture. The company currently has 5 upholstering machines. A steady rate of manufacturing throughout the year is critical to the operation of the facility. Sales of upholstered furniture are seasonal with 70% of sales occurring in the winter and spring. 605 of annual sales are upholstered chairs. Sales are expected to by 7,800 units annually.

Reference no: EM133770820

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