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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: table [ [ January
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next months as follows:
tableJanuaryMay,FebruaryJune,MarchJuly,AprilAugust,
Her operations manager is considering a new plan, which begins in January with units of inventory on hand. Stockout cost of lost sales is $ per unit. Inventory holding cost is $ per unit per month. Ignore any idletime costs. Evaluate the following plan.
This exercise contains only Plan
Plan E: Keep the current workforce, which is producing units per month, and subcontract to meet the rest of the demand. Subcontract cost is $ per unit.
tableMonthDemand,Plan EtableProductionUnitsSubcontract UnitstableEndingInventorytable December January February, March, April, May, June,
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