Question: A company uses a level strategy for Sales & Operations Planning. The plan for the first 3 months is shown in the table below. Suppose

A company uses a level strategy for Sales & Operations Planning. The plan for the first 3 months is shown in the table below. Suppose that the beginning inventory of Month 1 is 0 and the cost of inventory is $10 per unit per month. What is the inventory cost in Month 3?

Month	1	2	3
Forecast	380	400	420
Output
Regular	400	400	400
Overtime	0	0	0
Subcontract	0	0	0
Output - Forecast
Inventory
Beginning
Ending
Average
Backlog

		$100
		$0
		$150
		$50
		$200

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