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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 1,400 1,600

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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 1,400 1,600 1,800 1.800 June July August 2,200 2,300 1,700 1,500 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory Stockout cost of lost sales is $100 per unit. Inventory holding cost is S25 per unit per month. Ignore any idle-time costs. The plan is called plan B Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 900 units per month. Evaluate this plan by computing the costs for January through August. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers) Subcontract Units Ending Period Month Demand Production Invento 200 200 0 December 1 January 2 February 3 March 4 5 May 6 June 7 July 8 August 1,400 1,600 1,800 1,800 2,200 2,300 1,700 1,500 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 missing a # here already tried 200 400 400 800 900 300 100 ril The total subcontracting costS The total inventory carrying cost S The total cost, excluding normal time labor costs, is $ (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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