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Her operations manager is considering a new plan , which begins in January with 2 0 0 units on hand and ends with zero inventory.
Her operations manager is considering a newplan which begins in January with units on hand and ends with zero inventory. Stockout cost of lost sales is $ per unit. Inventory holding cost is $ per unit per month. Ignore anyidletime costs. The plan is called plan B
PlanB: Produce at a constant rate of units permonth which will meet minimum demands. Then usesubcontracting with additional units at a premium price of $ per unit. Subcontracting capacity is limited to units per month. Evaluate this plan by computing the costs for January through August.
In order to arrive at thecosts first compute the ending inventory and subcontracting units for each month by filling in the table below enter your responses as wholenumbers
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