Suppose Management Decides to Relax the Policy About Stockouts on a Month-To-Month

Multiple Choice

Suppose management decides to relax the policy about stockouts on a month-to-month basis.Instead,they just want to make sure that they end the entire five-month planning period with a zero balance on inventory.They have never worked this way before and don't have an idea what it costs to stockout,so they assign a value of $0 for each unit stocked out.What is the optimal planning period cost?

A) $42,520
B) $45,220
C) $40,225
D) $42,250