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Homework: Portfolio 4 Part 1 (chapter 13) Save Score: 0 of 3 pts 5 of 12 (1 complete) HW Score: 6.67%, 2 of 30 Problem

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Homework: Portfolio 4 Part 1 (chapter 13) Save Score: 0 of 3 pts 5 of 12 (1 complete) HW Score: 6.67%, 2 of 30 Problem 13.6 Question Help The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows January 1,450 May 2,300 February 1,700 June 2.100 March 1,600 July 1,800 April 1.900 August 1,300 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 $70 per unit. Inventory holding cost is $25 per unit per month Ignore any idle time costs Evaluate the following plans D and E Plan D Keep the current 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 additional cost of $55 per unit A warehouse now constrains the maximum allowable inventory on hand to 600 units or loss. Note: Do not produce in overtime if production or inventory are adequate to cover demand Plan D O.T. Production (Units) Production (Units) Ending Inventory Demand Stockouts (Units) 200 Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 1.450 1,700 1,600 1,900 2,300 2.100 1,600 1,600 1,600 1,600 1,600 1,600 Enter your answer in the edit fields and then click Check

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