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Sweet treats bakery

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Sweet treats bakery

  • This topic has 5 replies, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • February 20, 2021 at 11:29 am #611075
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    Hi Dear Tutor, in this question

    Brownies—————————Brownies—————–Muffins———————cupcakes
    Batch size—————————-40———————–30—————————–20
    Min demand————————30————————20——————————10
    Max demand———————–140————————90—————————-100

    I saw previous posts you calculated 140/40=4,90/30=3,100/20=5

    Minimum demand is based on long-term contract why you not considered minimum demand in calculating number of batch units such as (140+30)/40,(90+20)/30,(100+10)/20?

    February 20, 2021 at 2:39 pm #611097
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54811
    • ☆☆☆☆☆

    I cannot understand why they would possible want to do what you are suggesting.

    Any company would always want to produce to meet maximum demand if they are able to. Why on earth would then want to produce less?

    February 20, 2021 at 3:48 pm #611099
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    Actually it says daily minimum daily demand is required for a long-term contract with a local cafe and must be met.that is why it is contract it must be met first

    February 20, 2021 at 4:24 pm #611105
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54811
    • ☆☆☆☆☆

    Yes, I know it says that.

    The maximum demand means exactly that, and will include the amount to the local cafe.

    February 20, 2021 at 6:02 pm #611112
    kennigara
    Participant
    • Topics: 193
    • Replies: 250
    • ☆☆☆

    You mean inside 140 90 and 100 minimum demand is also included?

    February 21, 2021 at 8:13 am #611150
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54811
    • ☆☆☆☆☆

    Yes. The question does not say they are extra and so they must include the contract demand.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘Sweet treats bakery’ is closed to new replies.

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