A.

The total stockout cost =

(Enter your response as a whole number.)

B.

The total inventory carrying cost =

(Enter your response as a whole number.)

C.

The total cost, excluding normal time labor costs, is

(Enter your response as a whole number.)

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 1,500 1,700 1,700 1,700 May June July August 2,300 2,100 1,900 1,500 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 $100 per unit. Inventory holding cost is $25 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= 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 as whole numbers). Ending Demand Production Inventory Stockouts (Units) 200 1,800 Period Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 1,500 1,700 1,700 1,700 2,300 2,100 1,900 1,500 1,800 1,800 1,800 1,800 1,800 1,800 1,800 7 July 8 August