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.

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


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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