Ques.5 A manufacturer must produce a product in sufficient quantity to meet contractual sales in next four months. The production capacity and unit cost of production vary from month to month. The product produced in one month may be held for sale in later months but at an estimated storage cost of Re.1 per unit per month. No storage cost is incurred for goods sold in the same month in which they are produced. There is no opening inventory and none is desired at the end of four months. The necessary details are given in the following table: How much should the manufacturer produce each month to minimize total cost