Reference no: EM132655621

Kosar Manufacturing has collected the following information on one of its major products.

Most efficient production rate = 2,200 + X units per period

Production change costs = $30 per unit of change (from the most efficient production rate = 2,100 + X units/period)

Inventory costs = $7 per unit per period (on closing inventory balance)

Backorder costs = $15 per unit to carry demand into next period

Beginning inventory = "X*20" units

Period                Demand (units)

1                             3,000 + X

2                                2,300

3                               1,800 + X

4                                2,800

5                                 2,000 + X

6                                  2,300

Problem 1: Calculate a level production schedule that yields X inventory at the end of period 6.

Problem 2: What is the total cost of this solution? What is the total inventory cost of this solution?