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Homework: Chapter 13 Aggregate Planning and S&OP (Copy) Save Score: 0 of 1 pt 11 of 15 (8 complete) HW Score: 53.33%, 8 of 15 pts Problem 13.3 Question Help The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,200 May 2,100 February 1,500 June 2,100 March 1,600 July 1,700 April 1,900 August 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 $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1.600 units per month. The cost of hiring additional workers is $55 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1, 600 in January to 1,200 in February incurs a cost of layoff for 400 units in February. Hire Layoff Ending Stockouts Period Month Demand Production (Units) [Units) Inventory (Units] December 1,600 1.800 200 January 1,200 1.600 February 1,500 1,200 3 March 1,600 1.500 4 April 1,900 1.800 5 May 2,100 1.900 June 2,100 2.100 7 July 1,700 2.100 August 1,700 1.700