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Answer all parts The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,500

Answer all parts

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:

January 1,500 May 2,300
February 1,700 June 2,200
March 1,700 July 1,700
April 1,900 August 1,700

Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $100

per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan A.

Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both

1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,500 in February incurs a cost of layoff for 100 units in February.

image text in transcribed

The total cost of hirings =$

The total cost of layoffs = $

The total cost of inventory carrying cost = $

The total stockout cost = $

The total cost, excluding normal time labor costs, is $

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