Solution-What are the materials requirements

What are the materials requirements

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Question - The Ralston Company manufactures a special line of graphic tubing items. The company estimates it will sell 83,000 units of this item in 2020. The beginning finished goods inventory contains 28,000 units. The target for each year's ending inventory is 18,000 units. Each unit requires four feet of plastic tubing. The tubing inventory currently includes 82,000 feet of the required tubing. Materials on hand are targeted to equal 3 months' production. Any shortage in materials will be made up by the immediate purchase of materials. Sales take place evenly throughout the year. What are the materials requirements (in feet) for 2020?

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What are the materials requirements

Reference no: EM133079024

Reference no: EM133079024

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