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The president of Hill Enterprises, Tem Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 2,200 January 1,400 February
The president of Hill Enterprises, Tem Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 2,200 January 1,400 February 1,000 May June 2,200 March April 1,800 1.800 July August 1,800 1,400 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 $125 per unit. Inventory holding cost is $20 per unit per month Ignore any idle-me costs. The plan is called plan C 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 requirerent - 1775 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) 0 December Ending Period Month Demand Production Inventory 200 Stockouts (Units) 1 January 1,400 1,775 2 Februar 1,000 1,775 3 March 1,000 1,775 4 Apri 1,800 1,775 5 May 2,200 1,775 o June 2.200 1,775 7 July 1,800 1.775 B August 1,400 1.775
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