Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Please answer the following questions based on aggregate planning. Quarter 2 3 Demand 800 1000 900 600 Previous quarter's output Beginning inventory Stockout/backorder cost Inventory holding cost Production increase Production decrease 900 units 180 units $80 per unit $10 per unit at end of quarter $20 per unit $40 per unit What is the holding cost for quarter 1 if level strategy is adopted? 1200 1600 1000 1800
Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Please answer the following questions based on aggregate planning. Quarter 2 3 Demand 800 1000 900 600 Previous quarter's output Beginning inventory Stockout/backorder cost Inventory holding cost Production increase Production decrease 900 units 180 units $80 per unit $10 per unit at end of quarter $20 per unit $40 per unit What is the holding cost for quarter 1 if level strategy is adopted? 1200 1600 1000 1800
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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Transcribed Image Text:Question 20 (4 puni
Fred's Fabrication has the following aggregate demand requirements and other data
for the upcoming four quarters. Please answer the following questions based on
aggregate planning.
Quarter Demand
800
1000
1
2
3
Stockout/backorder cost
$80 per unit
Inventory holding cost
Production increase
Production decrease
$10 per unit at end of quarter
$20 per unit
$40 per unit
What is the holding cost for quarter 1 if level strategy is adopted?
4
1200
1600
1000
1800
Previous quarter's output
Beginning inventory
900
600
900 units
180 units
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