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

Her operations manager is considering a new plan, which begins in January with 200 units of imentory on hand. Stockout cost of lost sales is $100 per unit. Imentory holeng cont is $20 pe month. Ignore any idle-lime costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production mate equal to the average gross requirements excluding initial imventory and allow varying imventory ieveli Conduct your analysis for January through August. The average monthly demand requirement = Units. (Enter your response as a whole number.) In order to artive at the costs, first compute the ending inventory and stockout units for each month by fliing in the table below (enter your responses as whole numbera) Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost saies is $100 per unit. Inventory holiting cost is 520 per unit pe month. Ignore any idle-time costs. The plan is called plan C. Plan C: Koep a stable workforce by maintaining a constant production rate oqual to the average gross requirements excludng intial imventocy and allow varying inveriory lerels. Conduct your analysis for January through August. The average monthly demand requirement = unith. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout unts for each month by thing in the tabio below (enter. your responsos as whoie numbers) The total stockout cost =5 (Eiter your response as a whole number) The total inventory carrying cost = s (Enter your rosponse as a whole number.) The total cost, excluding normal time labor costs, is = ? (Entor your rosponse as a whote number)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
