Problem:
1. Mate Boomerang Corporation manufactures and sells plastic boomerangs. Expected boomerang sales (in units) for the upcoming months are as follows:
| |
July
|
Aug.
|
Sept.
|
Oct.
|
Nov.
|
Dec.
|
|
Expected unit sales
|
12,000
|
15,000
|
10,000
|
8,000
|
7,000
|
11,000
|
Seven ounces of plastic resin are needed to produce every boomerang. Mate likes to have enough plastic resin on hand at the end of the month to cover 25% of the next month's production requirements. Mate also likes to maintain a finished goods inventory equal to 10% of the next month's estimated sales.
Required:
How many ounces of plastic resin should Mate plan on purchasing during the month of October?