In developing a comprehensive profit plan, the requirements of the sales plan must be translated into supporting activities of the other major functions. In the case of a service company, the sales plan must be converted to service capability requirements; for a retail or wholesale enterprise, the sales plan must be translated into merchandise purchases requirements; and for a manufacturing enterprise, the sales plan must be converted to production (manufacturing) requirements. This and the next three chapters focus on a manufacturing enterprise; therefore, they discuss the manufacturing plan, or budget. This plan includes subbudgets for the following production, finish-goods and work-in-process inventories, and manufacturing overhand. Many of the concepts of inventory planning, although illustrated in a manufacturing context, are also applicable to nonmanufacturing setting.