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

Her operations manager is considering a new plan, which begins in January with 200 units of imventory on hand. Stockout cest of lost sales is $60 per unit. Inventory hoiding cost is $20 per unit per month lonore ary ide-time tosts. Evaluate the following plan This exercise contains only Plan D. Plan D. Keep the curtent wondorce 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 addifional cost of $50 per unit. A warehouse now constrains the maxmum allowable inventory on hand to 600 units or less. Note Do not produce in overtime if production or inventary are adequate to cover demand

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