A company is evaluating a CHASE PRODUCTION strategy. Calculate the total cost related to increasing and dereasing production to meet this plan. Demand Jan Feb 900 600 Mar Apr May Jun 800 1200 1400 1100 Note that 800 units were produced last month, in December. Inventory Carrying Cost is estimated to be $18.00 per unit per month. The cost of increasing production is $10.00 per unit. The cost of decreasing production is $14.00 per unit. Total cost of increasing and decreasing production for this plan is $_ OA. $12,800

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A company is evaluating a CHASE PRODUCTION strategy. Calculate the total cost related to increasing and dereasing production to meet this plan.
Demand
Jan
900
Feb
600
Mar Apr May Jun
800 1200 1400 1100
Note that 800 units were produced last month, in December.
Inventory Carrying Cost is estimated to be $18.00 per unit per month.
The cost of increasing production is $10.00 per unit.
The cost of decreasing production is $14.00 per unit.
Total cost of increasing and decreasing production for this plan is $
OA. $12,800
OB. $15,000
OC. $18,000
O D. Not enough information to determine.
O E. $17,400
Transcribed Image Text:A company is evaluating a CHASE PRODUCTION strategy. Calculate the total cost related to increasing and dereasing production to meet this plan. Demand Jan 900 Feb 600 Mar Apr May Jun 800 1200 1400 1100 Note that 800 units were produced last month, in December. Inventory Carrying Cost is estimated to be $18.00 per unit per month. The cost of increasing production is $10.00 per unit. The cost of decreasing production is $14.00 per unit. Total cost of increasing and decreasing production for this plan is $ OA. $12,800 OB. $15,000 OC. $18,000 O D. Not enough information to determine. O E. $17,400
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