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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 1,200 May 2,200 February

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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 1,200 May 2,200 February 1,700 June 2, 100 March 1,700 July 1,900 April 1,800 August 1,300 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 $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,200 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 1,000 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). Ending Subcontract Period Month Demand Production Inventory Units 0 December 200 January 1,200 1,200 2 February 1,700 1,200 3 March 1,700 1,200 4 April 1,800 1,200 5 May 2,200 1,200 6 June 2,100 1,200 7 July 1,900 1,200 8 August 1,300 1,200

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