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Written by:

Eva H


Date added:

January 12, 2016








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5 / 1228


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570 boats Apr.-June 2165 boats July-Sept. 3120 boats Oct.-Dec. 735 boats Total 6590 boats needed in the year. The total production for the year must equal its total demand. However, a boat used to meet the demand for a particular quarter need not necessarily have been produced in that quarter. The boat could have been made in an earlier quarter and held in inventory...
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The boat could have been made in an earlier quarter and held in inventory. The inventory holding cost for a boat increases proportionately with the number of quarters it is kept in inventory. Company officials estimate constant of proportionality to be $180 per boat per quarter. Similarly, demand can be “carried over” from one quarter to the next at an estimated cost of $630 per boat per quarter...
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