Aggregate demand for a product family is given in the table below for the four

    0

    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

    1000

    Q1 08

    5000

    9000

    ?

    ?

    Q2 08

    8000

    9000

    ?

    ?

    Q3 08

    7000

    9000

    ?

    ?

    Q4 08

    8000

    7000

    ?

    ?

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

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