Question: roblem 2 . Given the following forecasted demand and production plan, assume the beginning inventory in January is 1 0 0 . Answer the following

roblem 2. Given the following forecasted demand and production plan, assume
the beginning inventory in January is 100. Answer the following questions.
Month Sales Production
January 890890
February 977877
March 980900
April 763763
May 700690
June 690800
(a) Find out the ending inventory for June. (2pt)
(b) If the holding cost is $2 per unit per month based on average inventory
and the backorder cost is $4 per unit per month, then what is the backorder
cost of the plan? (1pt)

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