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Kosar Manufacturing has collected the following information on one of its major products. Most efficient production rate = 2,000 + X units per period Production

Kosar Manufacturing has collected the following information on one of its major products.

Most efficient production rate = 2,000 + X units per period

Production change costs = $20 per unit of change (from 2,000 + X units/period)

Inventory costs = $5 per unit per period (on closing inventory balance)

Backorder costs = $10 per unit to carry demand into next period

Beginning inventory = 400 units

x=400


Period

Demand (units)

1

3,000 + X

2

2300

3

1,800 + X

4

2800

5

2,000 + X

6

2,300


Required:

1. Calculate a level production schedule that yields X inventory at the end of period VI.

2. What is the total cost of this solution? What is the total inventory cost of this solution?

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