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

Her operations manager is considering a new plan,
Her operations manager is considering a new plan, which begins in January with 200 units of invensory on hand, Stockout cost of lost sales is 5100 per unit, Inventory holding cost is $25 per unit per month, lgnore any lide-time costs. The plan is called plan A. Plan A: Vary the woikforce level to execute a strategy that produces the quantity demanded in the prior month. The Decembor domand and rate of production are both 1.600 units per month. The cost of hring additional wobers is $50 per unt. The cost of laying of workers is $75 per unit. Evaluase this plan. (Enter all responses as whole numbers) Note. Both hirng and layoff costs are intured in the month of the change. For example, going from 1,600 in january to 1,200 in February incurs a cost of layoff for 400 units in Fobruary The total cost of hirings =$ (Enter your response as a wholo number). The total cost of layofts = (Enter your tesponse as a whole number) The sotal inventory carrying oost =5 (Enter your response as a whole number.) The lotal sockout cost = 1 (Enter your response as a whole number). The todal cost, excluting normal time labor costs, is = (Enter your response as a whoto number)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!