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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 , 4 5

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
350350
enter your response here
2
February
1,500
1,600
enter your response here
450450
enter your response here
3
March
1,600
1,600
enter your response here
450450
enter your response here
4
April
1,700
1,600
enter your response here
350350
enter your response here
5
May
2,200
1,600
enter your response here
250250
enter your response here
6
June
2,300
1,600
enter your response here
700700
enter your response here
7
July
1,700
1,600
enter your response here
100100
enter your response here
8
August
1,500
1,600
enter your response here
100100
enter your response here

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