The president of Hill$$ Enterprises, Terri$$ Hill, projects the$$ firm's aggregate demand requirements over the next $8$ months as$$ follows:

January

$1,450$

May

$2,200$

February

$1,500$

June

$2,300$

March

$1,600$

July

$1,700$

April

$1,700$

August

$1,500$

Her operations manager is considering a new$$ plan, which begins in January with $200$ units of inventory on hand. Stockout cost of lost sales is $$$$70$ per unit. Inventory holding cost is $$$$25$ per unit per month. Ignore any$$ idle$-$time costs. Evaluate the following plans D and E$.$

Part $2$

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 $$$$55$ 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 demand.

Part $3$

$$

Plan D

Month

Demand

Production

$($Units$)$

O$.$T$.$ Production$($Units$)$

Ending Inventory

Stockouts$($Units$)$

$0$

December

$200$

$1$

January

$1,450$

$1,600$

enter your response here

enter your response here

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$2$

February

$1,500$

$1,600$

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enter your response here

$3$

March

$1,600$

$1,600$

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$4$

April

$1,700$

$1,600$

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$5$

May

$2,200$

$1,600$

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$6$

June

$2,300$

$1,600$

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$7$

July

$1,700$

$1,600$

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$8$

August

$1,500$

$1,600$

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