2.9 A company wants to develop a level production plan. The beginning inventory is zero. Demand for the next four periods is given in what follows. a. What production rate per period will give a zero inventory at the end of period 4? b. When and in what quantities will backorders occur? c. What level production rate per period will avoid backorders? What will be the ending inventory in period 4? Period 1 2 3 4 Forecast Demand 9 5 9 9

2.10 If the cost of carrying inventory is $60 per unit per period and stockout cost $500 per unit, what will be the cost of the plan developed in problem 2.9a? What will be the cost of the plan developed in 2.9c?