Given the following data, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $6 per unit per quarter, what is the annual carrying cost? Opening and ending inventories are zero.If the company always carries 100 units of safety stock, what is the annual cost of carrying it

Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter7: Integration
Section7.EA: Extended Application Estimating Depletion Dates For Minerals
Problem 4EA
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Given the following data, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $6 per unit per
quarter, what is the annual carrying cost? Opening and ending inventories are zero.If the company always carries 100 units of safety stock, what is the annual cost of
carrying it

Quarter I
Quarter 2 Quarter 3
Quarter 4
Totals
Forecast Demand
5000
7000
8500
9500
Production
Ending Inventory
Average Inventory
Inventory Cost
Transcribed Image Text:Quarter I Quarter 2 Quarter 3 Quarter 4 Totals Forecast Demand 5000 7000 8500 9500 Production Ending Inventory Average Inventory Inventory Cost
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