Question: Chapter 13, question 5: Hill is now considering plan C: Keep a stable workforce by maintaining a constant production rate equal to the average requirements

Chapter 13, question 5: Hill is now considering plan C: Keep a stable workforce by maintaining a constant production rate equal to the average requirements and allow varying inventory levels. Beginning inventory, stockout costs, and holding costs are provided in Problem 13.3. Plot the demand with a graph that also shows average requirements. Conduct your analysis for Jarruary through August. Note: fill out the following table to find the total cost: Demand Production Planc Ending Inv. Stockouts (Units) Extra Cost Period 0 1 2 3 4 5 6 7 8 1.400 1.600 1,800 1.800 2.200 2 200 1.800 1,800 Total costs - $244,000 Total costs - $135,000 None of the above Total costs = $153,000 Total costs = $86,000

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