Question: 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
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 1 Totals Quarter 2 Quarter 3 Quarter 4 7000 Forecast Demand 5000 8500 9500 Production Ending Inventory Average Inventory Inventory Cost
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