Question: Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory Stockout cost of

Her operations manager is considering a new plan,
Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory Stockout cost of lost sales is $100 per unt. Inventory hoidry cost $25 per unst per month. Ignore any idle-time costs. The plan is caled plan B. Plan B: Produce at a constant rate of 1,200 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premum price of s75 per une subcontracing capacify is limited to 1,100 units per month. Evaluate this plan by computing the costs for January through Aogust. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filing in the table below (enter your responses as whole mambers)

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