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 600, 800, 1000, and 1200. Inventory carrying cost equals $10 per unit per quarter. Over the next year, what will be the sum of inventory carrying costs? A. $36,000 B. $10,000 C. $4,000 D. $0 E. $9,000
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