B) The Total subcontracting cost equals = ?

C) The total inventory carrying cost = ?

D) The total cost, excluding normal time labor cost, is= ?

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,100 February 1,500 June 2,300 March 1,600 July 1,900 April 1,700 August 1,300 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 $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. Plan B: Produce at a constant rate of 1,300 units per month, which will meet minimum demands. Then use subcontracting with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 1,000 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 below (enter your responses as whole numbers) Subcontract Units Demand Ending Inventory 200 Production Period Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July August 1,400 1,500 1,600 1,700 2,100 2.300 1,900 1,300 1,300 1.300 1,300 1,300 1,300 1.300 1,300 1,300 Enter your answer in the edit fields and then click Check Answer. 3 parts remaining Clear All Check