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Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. 540ckout cost of lost salos is

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Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. 540ckout cost of lost salos is 565 per unit inveritory holding cost is $20 per unit per month. Ignore any ide-time costs. Eveluate the following plans D and E. Plan D. Koep the current worlforce stable at producing 1,600 units per month. In additen to the regular production, another 20% of the normal production units can be produced in evertime at an additional cost of 555 per unt. A warehouse now constrains the mavimum alowable inventory on hand to 600 units or less Note: Do not prodice in overtme if production or itventory are adequate to cover demand

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