MAF551: Prestige Leather Sdn Bhd is now facing some problem in meeting the customer demands: Management Accounting And Control, Case Study, UiTM, Malaysia

Question 2

Prestige Leather Sdn Bhd is now facing some problem in meeting the customer demands. The company faces some difficulty in obtaining the raw material used due to government strict regulation regarding importing the material. Currently the material can be bought at RM50 per meter, and it is estimated to remain constant over the next period. Due to this, the whole demand for their well-known three products cannot be satisfied.

From the feedback of the suppliers, the company can only manage to obtain 10,000 meters imported from China and 5,000 meters from India.

Required:
a. Determine the shortage of raw materials.

b. Advice the production manager about the most optimum production plan, taking all factors into consideration.

Answer

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