Fairview Industries Is Preparing Its Aggregate Plan for the Second

question 45

Essay

Fairview Industries is preparing its aggregate plan for the second half of the year. The table below contains monthly demand estimates and working days per month. Complete the table by computing total demand, demand per day (for each month), and the average requirement (in units per day) over the six-month planning horizon. Prepare a graph of forecast demand and level production, by months, for the planning period. Label your graph carefully.

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Definitions:

Account Receivable

The amount customers are required to pay to a firm for goods and services already received but not yet paid for.

Payee

The party in a financial transaction who receives the payment.

Note Receivable

A written promise that a specified amount of money, plus potentially interest, will be paid by one party to another by a specific date.

Maker

In finance, the party that creates or issues a financial instrument, such as a check.