Question: 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

 Her operations manager is considering a new plan, which begins inJanuary with 200 units of inventory on hand. Stockout cost of lostsales is $100 per unit. Inventory holding cost is $20 per unit

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 1,600 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 $50 per unit. A warehouse now constrains the maximum allowable inventory on hand to 400 units or less. If production and/or inventory are adequate, do not produce any units in overtime. Note: Do not produce in overtime if production or inventory are adequate to cover demand. Note: Do not produce in overtime if production or inventory are adequate to cover demand. The total overtime production cost =$. (Enter your response as a whole number.) The total inventory holding cost for January through August =$ (Enter your response as a whole number.) The total stockout cost =$ (Enter your response as a whole number.) The total cost, excluding normal time labor costs, for Plan D=$ (Enter your response as a whole number.) Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $75 per unit. The warehouse and overtime constraints from Plan D do not apply to this plan. The total subcontracting cost =$ (Enter your response as a whole number.) The total inventory holding cost for January through August =$ (Enter your response as a whole number.) The total cost, excluding normal time labor costs, for Plan E=. (Enter your response as a whole number.)

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