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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
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 $65 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plan. This exercise contains only Plan E. Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $75 per unit. The total subcontracting cost =$. (Enter your response as a whole number.) The total inventory holding cost for January through August =$ (Enter your response as a whole number.)
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