Question: A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter was
A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter was The extra units produced are stored in a warehouse. The extra units needed are subcontracted. Demand over the next four quarters is estimated to be and Production cost is $ per unit, and Inventory cost is $ per unit. What is the production cost at this firm?
Input should be an exact number for example, or
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