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

Location, What are potential advantages and disadvantage of locating a prod...

What are potential advantages and disadvantage of locating a production facility in foreign country instead of using domestic location?

What is the annual carrying rate, ABC Aircraft uses 3,000 drill bits annual...

ABC Aircraft uses 3,000 drill bits annually. Each drill bit costs $50 and each order ABC places costs $25. The annual carrying rate is 40% of unit cost. ABC has contracted with the

Disadvantages of enterprise resource planning, Disadvantages of ERP Systems...

Disadvantages of ERP Systems 1. Expense and Time in Implementation: Getting the full benefits of WRP takes time and money: Although ERP offers many strategic advantages by streaml

Explain malcolm baldrige national quality award, "Malcolm Baldrige National...

"Malcolm Baldrige National Quality Award" Please respond to the following Discuss the standout features of the companies approaches to managing operations. Discuss the attribute

Explain what is the cost associated, Your company, ABC Company, uses 100% i...

Your company, ABC Company, uses 100% inspection for all materials and requires zero defect quality of all its vendors. If bad parts are found, it cost $1.00 per part to inspect the

Explain the objectives of work study for any management, Explain the object...

Explain the objectives of work study for any management. The objectives of work study for any management are:- a) Enhanced working processes and standard procedures. b) L

What is horizontal integration, Horizontal integration has benefits to the ...

Horizontal integration has benefits to the firms involved. Consider the consolidation in the vent-promotion business when Live Nation bought Ticketmaster in 2010. List some specifi

Oprations process design, what is operation process design ? what are the i...

what is operation process design ? what are the important factors that effect a process design

Explain minimum probability of performing needed, A system consists of thre...

A system consists of three identical components. In order for the system to perform as intended, all of the components must perform. Each has the same probability of performance. I

Explain criminally liable for actions of a few employees, Respondeat superi...

Respondeat superior is the theoretical basis for holding companies criminally liable for actions of their employees. Companies oftentimes have little defense against prosecution. C

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