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

Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cest of lost sales is $60 per unit invectory holding cost is 520 per unit peer month. Ignore any idle-time costs. Evaluate the following plan. This exerese cantains only Plan D. Plan D: Keep the current wockforce stable at producing 1,600 units per month. In addision 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 warohouse now coestrains the mawimum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or invontory are adequate to cover demand

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