Question: Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand, 5 slockout cost of lost sales
Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand, 5 slockout cost of lost sales is $100 per unt. Inventory holdng cost is $20 unit per month. lgnore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rale equal to the average gress requirements excluding initial inventory and allow varying inventory lovale. Conduct your analysis for January through August The average monthly demand requirement i units. (riter your response as a whole number) In order to arrive at the costs, first compule the ending inventory and stockout units for each month by fling in the table below (enter your rosponses as whole numbers) The total stockout cost =5 (Enter your response as a whole number)
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