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

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Her operations manager is consideing a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit inventory holding coit is $20 per unit per month. lgnore any lide-time cots. Evaluate the following plans D and E. Plan D. Keep the cument workforce stable at producing 1,600 units per month, In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additonal cost of 555 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units of less. Note: Do not produce in overtime if production or inventory are adequate to cover domand

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