Lori Locks: Producing Safes for a Safe Future

How many safes should Lori Locks produce in January to ensure a successful sales forecast for April?

A. 2,400 safes

B. 1,500 safes

C. 2,000 safes

Answer:

Lori Locks should produce 2,400 safes in January.

Lori Locks, a renowned manufacturer of security safes, is gearing up for a successful sales forecast in April 2016. In order to achieve this, they must strategically plan their production for the preceding months, starting with January.

Based on the given information, Lori Locks' ending finished goods for a month are equal to 15% of the next month's sales. With an expected sales total of 16,000 units in April, we can calculate that the ending finished goods at the end of March should be 15% of 16,000 units, which equals 2,400 units.

Therefore, to meet the demand for April's sales, Lori Locks should produce 2,400 safes in January. This careful planning and forecasting ensure that they have enough inventory to meet customer demands and maintain a smooth production flow.