Explain production budget, Operation Management

Assignment Help:

Explain production budget.

A production budget may be made by production manager in consultation along with his assistants after obtaining the sales Budget. A production budget demonstrates the quantity of products to be manufactured.

This is based upon:

(i) Sales budget,

(ii) Factory capacity (storage and Production),

(iii) Budgeted stock needs,

(iv) Economic lot size

(v) Accessibility of raw material and labour.

A production budget gets the cost of producing the estimation volume of saleable products. A production plan is computed in terms of the number of units to be produced in each era, as a month. As far as possible, the production must be planned at a relatively even rate, even if the sales budget indicates a high seasonal sales forecast.


Related Discussions:- Explain production budget

Importance of layout, Importance of Layout 1. Economic in Handling : ...

Importance of Layout 1. Economic in Handling : Nearly 30 per cent   to 40 per cent of the manufacturing costs in accounted for by materials handling. Every effort should ther

Describe what is the economic order quantity, The Central Valve Company sel...

The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves, the Western, has an annual demand of 6,000 units. The price of ea

Explain if overachievement is acceptable, If overachievement is acceptable,...

If overachievement is acceptable, the appropriate di+ variable can be dropped from the objective function.

Contents of an operations strategy , Contents of an Operations Strategy  ...

Contents of an Operations Strategy  The contents of an operations strategy is the policies, plans, performance targets which the organisation wishes to achieve. To determine

Consolidated statements of operations management, Corrpro Companies, Inc., ...

Corrpro Companies, Inc., founded in 1984, provides corrosion control-related services, systems, equipment, and materials to the infrastructure, environmental, and energy markets.Co

Find cause the cost of capital to decrease, Due to changes in regulatory re...

Due to changes in regulatory requirements, the transactions costs associated with selling corporate securities increased by $1 per share. This change will Answer a. cause the co

Explain terms of developing a project plan, In terms of developing a projec...

In terms of developing a project plan, specifically recommend how this resource could expedite that process.

Analyse the cost - benefits and resources , Undertake Systems based analysi...

Undertake Systems based analysis, including: i. Developing a systems based diagnosis of the ‘situation'; ii. Analyse one or more processes which are considered to be problem

What is decomposition principle, Solve the following linear program using t...

Solve the following linear program using the decomposition principle: minimize z = ?2x1 ? 5x2 subject to x1 + 2x2 = 13.5 x1 + 3x2 = 18.0 x1 ? 9 x2 ? 5 x1, x2 ? 0. Let the first two

What are the ethics in decision making, What basic knowledge do you have re...

What basic knowledge do you have regarding the use of ethics in decision making?

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd