The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 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 $65 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. 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. \begin{tabular}{|c|c|c|c|c|c|c|} \hline & & & & \multicolumn{3}{|c|}{ Plan D } \\ \hline & Month & Demand & \begin{tabular}{c} Production \\ (Units) \end{tabular} & \begin{tabular}{l} O.T. \\ Production (Units) \end{tabular} & \begin{tabular}{l} Ending \\ Inventory \end{tabular} & Stockouts (Units) \\ \hline & December & & & & 200 & \\ \hline 1 & & 1,500 & 1,600 & & & \\ \hline 2 & February & 1,700 & 1,600 & & & \\ \hline & March & 1,600 & 1,600 & & & \\ \hline & April & 1,900 & 1,600 & & & \\ \hline & May & 2,100 & 1,600 & & = & \\ \hline & June & 2,100 & 1,600 & & & \\ \hline & July & 1,900 & 1,600 & & & \\ \hline & 8 August & 1,400 & 1,600 & & & \\ \hline \end{tabular}