Quarter I Quarter 2 Quarter 3 Quarter 4 Totals Forecast Demand 3000 4000 6500 6500 Production Ending Inventory Average Inventory Inventory Cost

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Given the following data, calculate a level production plan, quarterly ending inventory, and average quarterly inventory. If inventory carrying costs are $3 per unit per
quarter, what is the annual carrying cost? Opening and ending inventories are zero.

Quarter I
Quarter 2
Quarter 3
Quarter 4
Totals
Forecast Demand
3000
4000
6500
6500
Production
Ending Inventory
Average Inventory
Inventory Cost
Transcribed Image Text:Quarter I Quarter 2 Quarter 3 Quarter 4 Totals Forecast Demand 3000 4000 6500 6500 Production Ending Inventory Average Inventory Inventory Cost
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