Kosar Manufacturing has collected the following information on one of its major products.

Most efficient production rate = 2,000 + X units per period

Production change costs = $20 per unit of change (from 2,000 + X units/period)

Inventory costs = $5 per unit per period (on closing inventory balance)

Backorder costs = $10 per unit to carry demand into next period

Beginning inventory = 400 units

x=400

Period	Demand (units)
1	3,000 + X
2	2300
3	1,800 + X
4	2800
5	2,000 + X
6	2,300

Required:

1. Calculate a level production schedule that yields X inventory at the end of period VI.

2. What is the total cost of this solution? What is the total inventory cost of this solution?

Answer rating: 100% (QA)

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