Dean and Delila Corporation Has Experienced a Number of Out-Of-Stock

question 43

Essay

Dean and Delila Corporation has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of August, for example, was only 30 units-an all-time low.
Management would like to implement a policy whereby finished-goods inventory is 50% of the following month's sales. Budgeted sales for September, October, and November are expected to be 6,000 units, 6,600 units, and 5,500 units, respectively.
Required:
Determine the number of units that Dean and Delila must produce in September and October

---

Definitions:

Groupthink

The tendency among individuals in a group to prioritize agreement over critical thinking, leading to results in decision-making that are flawed or unwise.

Risky Shift

The phenomenon where a group collectively agrees on a course of action that is more extreme than they would have made individually.

Groupthink

In team environments, a pattern where the drive for cohesive thinking or obedience culminates in choices that are misguided or harmful.

Critical Evaluation

Involves systematically assessing the merits and faults of a theory, process, or piece of work, considering all relevant factors to form a logical judgment.