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eriods. A firm practices a pure level strategy that sets the production level at the average demand ov last quarter was 0. The extra units produced are stored in a warehouse. The extra units needed are subcontracted. Demand c the next four quarters is estimated to be 865, 1,043, 1,050, and 860. Production cost is $22 per unit, and Inventory cost is $ per unit. What is the production cost at this firm?

eriods. A firm practices a pure level strategy that sets the production level at the average demand ov last quarter was 0. The extra units produced are stored in a warehouse. The extra units needed are subcontracted. Demand c the next four quarters is estimated to be 865, 1,043, 1,050, and 860. Production cost is $22 per unit, and Inventory cost is $ per unit. What is the production cost at this firm?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter was 0. The extra units produced are stored in a warehouse. The extra units needed are subcontracted. Demand over the next four quarters is estimated to be 865, 1,043, 1,050, and 860. Production cost is $22 per unit, and Inventory cost is $6 per unit. What is the production cost at this firm? Input should be an exact number (for example, 5 or 10).
Transcribed Image Text:A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter was 0. The extra units produced are stored in a warehouse. The extra units needed are subcontracted. Demand over the next four quarters is estimated to be 865, 1,043, 1,050, and 860. Production cost is $22 per unit, and Inventory cost is $6 per unit. What is the production cost at this firm? Input should be an exact number (for example, 5 or 10).
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