If the cost of carrying inventory is $60 per unit per period and stockout cost $500 per

Question:

If the cost of carrying inventory is $60 per unit per period and stockout cost $500 per unit, what will be the cost of the plan developed in problem 2.9a? What will be the cost of the plan developed in 2.9c?

a. What production rate per period will give a zero inventory at the end of period 4?

c. What level production rate per period will avoid backorders? What will be the ending inventory in period 4?

Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...

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