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12/2 Rahul, operations manager at a furniture store has received the following estimates of demand requirements: July August September October November December 1000 1200
12/2 Rahul, operations manager at a furniture store has received the following estimates of demand requirements: July August September October November December 1000 1200 3/12-20 /03/1 1400 1800 1800 1600 1230001000922 2023/03/12 3/83/12 Assuming stockout costs for lost sales of Rs.100 per unit, inventory carrying costs of Rs.25 per unit per month, and zero beginning and ending inventory, evaluate these two plans based on overall costs: [2] a. Plan A: Produce at a steady rate (equal to minimum requirement) of 1000 units per month and subcontract additional units at a Rs.60 per unit premium cost. b. Plan B: Vary the workforce, which performs at a current production level of 1300 units per month. The cost of hiring additional workers is Rs. 3000 units per 100 units produced. The cost of layoffs is Rs. 6000 per 100 units cut back. [3]
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