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ShredX makes snowboards. The company's expected quarterly demand is given in the table. The company will have a beginning inventory of 300 snowboards as safety
ShredX makes snowboards. The company's expected quarterly demand is given in the table. The company will have a beginning inventory of 300 snowboards as safety stock.
Below is other planning data:
- Production cost per unit=$200
- Hiring cost=$500/worker
- Inventory carrying cost=$50 per unit per quarter
- Firing cost=$750/worker
- Backorder cost=$100 per unit per quarter
- Each worker can produce 100 units per quarter
- Current number of workers = 40
What is the Level plan Back Order Cost and Planned Inventory Cost?
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