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The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one - time
The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming onetime stockout costs for lost sales of $ per unit, inventory carrying costs of $ per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis:
Plan A: Produce at a steady rateequal to minimum requirements of units per month and subcontract additional units at a $ per unit premium cost. Subcontracting capacity is limited to units per month. Enter all responses as whole numbers
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