Question: her operations manager is considering a new plan which begins in January with 200 units of inventory on hand stockout cost of loss sales is
her operations manager is considering a new plan which begins in January with 200 units of inventory on hand stockout cost of loss sales is 60 per unit inventory Holden causes $20 per unit per month ignore any idol cost evaluate the following plans D & E plan de keep the current workforce stable at producing 1600 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 600 units or less
January February March April 1,450 1,500 1,700 1,800 May June July August 2,200 2,100 1,700 1,300 and E. Eimum allowable inventory on hand to 600 units or less. Plan D 0.1 Production (Units) Production (Units) Demand Ending Inventory Stockouts (Units) 200 Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 1.450 1,500 1,700 1,800 2,200 2,100 1,700 1,300 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 LLLLLLLL from Plan D do not apply to this plan. Plan E Production (Units) Subcontract (Units) Ending Inventory Demand 200 Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 1,450 1,500 1.700 1,800 2,200 2.100 1.700 1.300 1,600 1,600 1,600 1,600 1,600 1.600 1,600 1,600 7 July 8 August 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 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 rumber)
Plan E keep the current work force which is producing 1600 units per month and subcontract to meet the rest of the demand subcontract causes $80 per unit subconscious in capacity is limited to 500 units per month the warehouse in overtime constrains from plan D do not apply to this plan

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