Question
. Kosar Manufacturing has collected the following information on one of its major products. Most efficient production rate = 2,200 + X units per period
. Kosar Manufacturing has collected the following information on one of its major products.
Most efficient production rate = 2,200 + X units per period
Production change costs = $30 per unit of change (from the most efficient production rate = 2,100 + X units/period)
Inventory costs = $7 per unit per period (on closing inventory balance)
Backorder costs = $15 per unit to carry demand into next period
Beginning inventory = "X*20" units
Period
Demand (units)
1
3,000 + X
2
2,300
3
1,800 + X
4
2,800
5
2,000 + X
6
2,300
Calculate a level production schedule that yields X inventory at the end of period 6.
What is the total cost of this solution? What is the total inventory cost of this solution?
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