Question: Her operasons mactger is considering a new plan, which begins in Jaruary with 200 units of inventery on hand Stockeit cost of lost sales is
Her operasons mactger is considering a new plan, which begins in Jaruary with 200 units of inventery on hand Stockeit cost of lost sales is $50 per unt. Ifraniacy holding cest is S20 per unt ger month. lanore any idie.time costs. Evaluble the following plans D and E Plan D. Keep the current woikserce stable at producing 1.800 unts per month. In addeion to the regular production, aniother 20% of the nomal production unta can be produced in oretime at ar addinonal cost of $50 par unt. A wacehovie now constrans the maximum alowatie hwertory on hand to 600 units or less. Note: Do not produce in overtite if produchon or inventery are adwquate to cover damand
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