The owner of a sporting goods chain has projected the following aggregate plan for demand of...
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The owner of a sporting goods chain has projected the following aggregate plan for demand of basketballs across all the stores for the first 6 months of the year: Month January February March April Forecasted Demand 2200 2600 1800 3100 2300 2800 May June The operations manager of the sporting goods stores plans to meet demands with a constant monthly production of 1700 units. Inventory holding costs are $10 per unit. Subcontracting will be limited to 800 units per month, at a cost of $55 per unit. Stockout costs are $90 per unit. How many stockout are unavoidable over the planning period (how many units of shortfall are unavoidable)? The owner of a sporting goods chain has projected the following aggregate plan for demand of basketballs across all the stores for the first 6 months of the year: Month January February March April Forecasted Demand 2200 2600 1800 3100 2300 2800 May June The operations manager of the sporting goods stores plans to meet demands with a constant monthly production of 1700 units. Inventory holding costs are $10 per unit. Subcontracting will be limited to 800 units per month, at a cost of $55 per unit. Stockout costs are $90 per unit. How many stockout are unavoidable over the planning period (how many units of shortfall are unavoidable)?
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