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Homework: Chapter 13 Aggregate Planning and S&OP (Copy) Save Score: 0 of 1 pt 13 of 15 (8 complete) HW Score: 53.33%, 8 of 15 pts Problem 13.6 - Bookmatch Question Help The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,200 February 1,600 June 2,200 March 1,800 July 1,800 April 1,800 August 1,800 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 $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 1,800 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 400 units or less. If production and/or inventory are adequate, do not produce any units in overtime. Note: Do not produce in overtime if production or inventory are adequate to cover demand. Plan D D.T. Production Production Ending Stockouts Month Demand [Units) (Units) Inventory (Units) 0 December 200 1 January 1,400 1,600 2 February 1,600 1,600 3 March 1,800 1,600 4 April 1,800 1,600 5 May 2,200 1,600 6 June 2.200 1,600 7 July 1,800 1,600 8 August 1,800 1,600