a) The total overtime production cost = $ ...

b) The total inventory holding cost for January through August = $ ...

c) The total stockout cost = $ ...

d) The total cost, excluding normal time labor costs, for Plan D = $ ...

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March April 1,450 1,600 1,700 May June July August 2,300 2,100 1,800 1,300 1,700 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 $60 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 $50 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce overtime if production or inventory are adequate to cover demand. Plan D Production (Units) O.T. Production (Units) Ending Inventory 200 Stockouts (Units) Demand Month O December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 1,450 1,600 1,700 1,700 2,300 2,100 1,800 1,300 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600