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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows January February March 1,450 1,500
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows January February March 1,450 1,500 1,700 1,900 2,200 2,300 1,900 1,300 ay June August 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 $60 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. Evaluate the following plan. This exercise contains only Plan D 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 $50 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less Note: Do not produce in overtime if production or inventory are adequate to cover demana Plan D O.T Production Units Ending Invento 200 Production Units Stockouts Units Month Demand 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 1,450 1,500 1,700 1,900 2,200 2,300 1,900 1,300 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 The total overtime production cost The total inventory holding cost for January through August -S The total stockout cost 9$ The total cost, excluding normal time labor costs, for Plan D S (Enter your response as a whole number.,) (Enter your response as a whole number.,) Enter your response as a whole number.) (Enter your response as a whole number.,)
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