Determine the ending inventory and lost sales

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Reference no: EM13109278

Aggregate demand for a product family is given in the table below for the four quarters of 2008. The inventory cost is $2 per unit per quarter. Demand that cannot be met is a lost sale. The cost of a lost sale is $40 per unit.

Quarter	Demand	Production	Inventory	Lost Sale
			1,000
Q1 08	5,000	9,000	?	?
Q2 08	8,000	9,000	?	?
Q3 08	7,000	9,000	?	?
Q4 08	8,000	7,000	?	?

Taking production and initial inventory into account, determine the ending inventory and lost sales for each of the four quarters and then compute the total cost of carrying inventory and lost sales for 2008 (i.e. do not include the cost of carrying the initial inventory).

Reference no: EM13109278

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