Question: a firm practices a pure level strategy that sets production level at the average demand over the next four periods. Inventory last quarter is 0.
a firm practices a pure level strategy that sets production level at the average demand over the next four periods. Inventory last quarter is 0. the extra units produced are stored in a warehouse . the extra units needed are subcontrcated . demand over the next four quarters is estimated to be 877,833,858, and 1057. production cost is $17 per unit and inventory cost is $7 per unit. how much is the cost of carrying the inventory accumulated during the first period?
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