Question
Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory
Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement= units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). Period Month 0 December 1 January Ending Inventory Demand Production Stockouts (Units) 200 1,500 1,800 600 0 0 0 2 February 1,700 1,800 600 3 March 1,700 1,800 400 4 April 1,700 1,800 0 5 May 2,300 1,800 0 500 6 June 2,100 1,800 0 300 7 July 1,900 1,800 0 0 8 August 1,500 1,800 0 0 The total stockout cost = $ (Enter your response as a whole number.) The total inventory carrying cost = $ (Enter your response as a whole number.) The total cost, excluding normal time labor costs, is = $ (Enter your response as a whole number.)
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