Question: Q4 A firm practices a pure level strategy that sets the production level at the average demand over the next four periods. Inventory last quarter
Q4
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 0. 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 1.060, 1,078, 849, and 1,157. Production cost is $23 per unit, and Inventory cost is $6 per unit. What is the production level at this firm? keep two decimais it not exact, either round up or down is ok. For example, for 0.1346, (0.13 or 13) and (0.14 or 14) are correct
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