Consider the demand data given in Problem 9. A Level plan that produces 180 units per period
Question:
Consider the demand data given in Problem 9.
A Level plan that produces 180 units per period in the regular time is being used. The inventory carrying cost per unit per period is $25, and the shortage cost per unit per period is
$30.00. The beginning inventory is 100 units. There is no overtime production or subcontracting. Answer the next two questions.
a. What is the total cost of holding inventories?
b. What is the cost of shortages?
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Related Book For 
Production And Operations Management Systems
ISBN: 9781466507333
1st Edition
Authors: Sushil Gupta; Martin Starr
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