Question: Her operasions manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is

Her operasions manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit. Inventory holding cost is S20 per unit per month. lgnore any ide-time costs. Evaluate the followhg plan. This exercise contains only Plan D. Plan D: Keep the current workforce stable at producing 1,600 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 $55 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or inventory are adequate to cover demand

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