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what is the answer to the last question Her operations manager is considering a new plan, which begins in January with 200 units on hand
what is the answer to the last question
Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per monith. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting. with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table bolow (enter your responses as whole Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $80 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the cosis for January through August. In order to arive at the costs, first compute the ending inventory and subcontracting units for each month by filing in the table below (enter your responses as whole numbers). The total subcontracting cost =$216000. (Enter your response as a whole number) The total inventocy carrying cost = : (Enteryour response as a whole number) Step by Step Solution
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