Aron Company Makes Computer Screens, Model 1 and Model 2

question 36

Essay

Aron Company makes computer screens, Model 1 and Model 2. Aron anticipates selling the screens as follows:
The inventory on 1/1/12 is 2500 units of Model 1 and 3000 units of Model 2. Aron wants to have on hand 45% of the anticipated sales of the following month for each model. Prepare a production budget for the first 3 quarters of 2012 for both models.
$$\begin{array} { | l | c | c | } \hline & \text { Unit of } & \text { Units of } \\\hline & \text { Model 1 } & \text { Model 2 } \\\hline \text { Quarter ending 3/31 } & 5,000 & 6,000 \\\hline \text { Quarter ending 6/30 } & 4,500 & 5,500 \\\hline \text { Quarter ending 9/30 } & 5,500 & 6,500 \\\hline \text { Quarter ending 12/31 } & 6,000 & 7,000 \\\hline\end{array}$$

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Definitions:

Open-system Perspective

An open-system perspective views organizations as entities that interact with their external environments, exchanging resources, and being influenced by external factors.

Multivariate Decision

A decision-making process that involves considering multiple variables or factors simultaneously to reach a conclusion or solution.

Contingency Approach

A management theory that suggests the most appropriate form of decision making, leadership, or organization is dependent on the specific variables of the situation.

Production-oriented Management

This approach to management prioritizes the efficiency of the production process and output over other factors, focusing on high production rates and cost minimization.