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Metal Fabricators, Inc. manufactures gas grill tanks, Model #1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 =

Metal Fabricators, Inc. manufactures gas grill tanks, Model #1420, for four original equipment manufacturers (OEMs). Demand is forecast to be as follows: Quarter 1 = 2,700 tanks, Quarter2 = 3,400, Quarter 3 = 3,700, Quarter 4 = 2,900. Due to a hedging program for sheet steel and increases in international tariffs, production cost per quarter vary as follows: Quarter 1 =$23.50 per tank, Quarter 2 = $28.00, Quarter 3 = $25.90, Quarter 4 = $29.00. Due to production contracts with the OEMs, no shortages are allowed. Beginning inventory for Quarter 1 is 300 tanks. At the end of each quarter, inventory holding costs are $4.25 per tank.

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