Santorini Corporation Has Experienced a Number of Out-Of-Stock Situations with Respect

question 31

Essay

Santorini Corporation has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of May, for example, was only 50 units-an all-time low.
Management desires to implement a policy whereby finished-goods inventory is 70% of the following month's sales. Budgeted sales for June, July, and August are expected to be 5,000 units, 5,600 units, and 5,500 units, respectively.
Required:
Determine the number of units that Santorini must produce in June and July.

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Definitions:

Environmental Problems

Issues affecting the natural world, typically caused by human activity, that pose risks to ecosystems, biodiversity, and human well-being.

Hardy Personality

A set of personality traits characterized by resilience, commitment, control, and challenge, thought to reduce stress impact.

Type B

A personality type characterized by a generally laid-back, relaxed, and less competitive attitude towards life, in contrast to the more stressed and aggressive Type A personality.

Type C

A personality style characterized by emotional expression, suppression, and an increased risk of stress-related illnesses.