Calculate the number of months of additional inventory that was produced for each product. Evaluate the forecasting skills of Team Baldwin. If the goal was to have less than 3 months of inventory at the end of the year and not stockout, then which product had the best unit forecast

Question Completion:

Production Information

                 Primary      Units      Unit

Name      Segment      Sold   Inventory

Baker         Trad          1,391         898  

Bead          Low          1,899         873

Bid             High            212         558

Bold           Pfmn          572          108

Buddy        Size           483              0

1. Number of months of additional inventory that was produced for each product:

                 Primary      Units      Unit             Number of

Name      Segment      Sold   Inventory  Months of inventory

Baker         Trad          1,391         898        7.75 (898/1,391 * 12)

Bead          Low          1,899         873        5.52 (873/1,899 * 12)

Bid             High            212         558       31.58 (558/212 * 12)

Bold           Pfmn          572          108        2.27 (108/572 * 12)

Buddy        Size           483              0        0 (0/483 * 12)

2. Team Baldwin's forecasting skills are lacking in exactness and require more refining.

3. The product that had the best unit forecast is Bold with less than 3 months of inventory at the end of the year (2.27 months).

Explanation:

a) Data and Calculations:

Production Information

                 Primary      Units      Unit             Number of

Name      Segment      Sold   Inventory  Months of inventory

Baker         Trad          1,391         898        7.75 (898/1,391 * 12)

Bead          Low          1,899         873        5.52 (873/1,899 * 12)

Bid             High            212         558       31.58 (558/212 * 12)

Bold           Pfmn          572          108        2.27 (108/572 * 12)

Buddy        Size           483              0        0 (0/483 * 12)

income statement is prepared in order to show the profits and loss of a business. in order to prepare the income statement she should collect all the income and expenses of the product with the cost of production.