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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Sweet treats bakery
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?
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?
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
Yes, I know it says that.
The maximum demand means exactly that, and will include the amount to the local cafe.
You mean inside 140 90 and 100 minimum demand is also included?
Yes. The question does not say they are extra and so they must include the contract demand.
