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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate de and requirements over the next 8 months as follows: Janually February March 1.200
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate de and requirements over the next 8 months as follows: Janually February March 1.200 1.500 1.600 1.900 May June July August 2.100 2,300 1,700 1.300 April 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 $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels Conduct your analysis for January through August The average monthly demand requirement= 1700 units. (Enter your response as a whole number.! In order to arrive at the costs, first compute the ending Inventory and stockout units for each month by filling in the table below enter your responses &3 Whole numbers) Ending Inventory Stockouts Units) Demind Production Period Month 0 Dixbe 1 January 2 February 3 March 4 April 5 May 8 June 7 July 5 August 1,200 1.500 1,500 1,900 2.100 2.300 1,700 1,300 1,700 1,700 1,700 1,700 1,700 1,700 1,700 1,700
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