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The output voltage of the photovoltaic inverter is an alternating voltage.
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If RCF does not maintain a safety stock, the estimated total carrying costs for the computer chairs for the coming year based on their current schedule is:
A. US $4,000
B. US $12,500
C. US $5,000
D. US $6,250
Answer: D
Explanation:
Given four production runs and an annual demand of 5,000 units, each production run must generate 1,250 units. Inventory will total 1,250 units at the completion of each run but will decline to zero just prior to the next run. Thus, the average inventory is 625 units 1,250 - 2), and the total carrying cost is US $6,250 625 units x $10).

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