Question: A firm practices a level strategy based on the next year's quarterly demand. With an initial inventory level of 0, demand over the next four
A firm practices a level strategy based on the next year's quarterly demand. With an initial inventory level of 0, demand over the next four quarters is estimated to be 280, 800, 1,000, and 1,200. Inventory carrying cost equals $12 per unit per quarter. Over the next year, what will be the sum of inventory carrying costs? A) $17,760 B) $39,360 C) $9,840 D) $6,720 E) $0 The correct answer is A but I don't know how to get there.
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