Consider the following two scenarios for monthly inventories and sales for a company producing cereal. In both scenarios, the company's sales are the same. 
In scenario A, the company maintains production at a constant level. In scenario B, the company adjusts production from month to month to try to match sales.
(A)Calculate the inventory investment in each month and resulting stock of inventory at the beginning of the following month for both scenarios.
(B)How does maintaining constant production affect the stock of inventory? Explain.
Definitions:
Maintenance Rehearsal
A cognitive process involving the repetition of information to keep it within working memory or to encode it for long-term memory.
Retrograde Amnesia
A condition in which people lose the ability to access memories they had before a brain injury.
New Memories
Information or experiences that have been recently encoded into an individual's memory system.
Anterograde Amnesia
A condition in which people lose the ability to form new memories after experiencing a brain injury.
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