152 The Stock Market Crash—And After 
in a year. As a result the factory had to be closed 
down for ten months. 
“In another plant the sales ran away with the 
production and the output was sold 18 months in 
advance, at a time when prices were rising. Wages 
and costs of material went up so that for this 18- 
month period there was an actual loss. Both of these 
cases were due to a lack of co6rdination between pro- 
duction and sales. 
“But a curve in a broken line can be projected show- 
ing the expected sales, say, of a popular standardized 
product where the sales were always low during the 
summer and high in the autumn. A solid line would 
show the production schedule planned to meet the 
expected sales. In a particular instance the processes 
required a great deal of skill, and it was, of course, 
impossible to discharge workers in the summer and 
get them back in the autumn. Hence it was planned 
to continue manufacturing throughout the summer 
and place the product in cold storage ready for the 
large sales in October and November. This even 
schedule reduced the cost of production but increased 
the investment in inventories during the summer. 
“In order to find out in advance how much money 
would be required from the banks for this purpose, 
the expected receipts were charted in comparison 
with the expenditures for material, labor and over- 
head. It was found that money was received in bank 
usually about 60 days after the goods were sold. 
The chart showed that at the end of September addi- 
tional financing would be necessary to the extent of