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2. Kosar Manufacturing has collected the following information on one of its major products. Most efficient production rate = (2,000 + X) units per period
2. 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 = $6 per unit per period (on closing inventory balance) Backorder costs = $12 per unit to carry demand into next period Beginning inventory =2X units X=360 Period Demand (units) 1 3,000 + X 2 2,300 1,800 + X 4 2,800 5 2,000 + X 6 2,300 a) Calculate a level production schedule that yields X inventory at the end of period 6. Ending Inventory Regular Production Extra Production Demand Production Quarter 0 2 4 5 | Average b) What is the total cost of this solution? What is the total inventory cost of this solution? (25 points) Extra production Inventory Backorder Costs Total cost
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