Her operations manager is considering a new$$ plan, which begins in January with

$200200$

units of inventory on hand. Stockout cost of lost sales is

$$$$6060$

per unit. Inventory holding cost is

$$$$2020$

per unit per month. Ignore any$$ idle$-$time costs. Evaluate the following

plan.

This exercise contains only Plan E$.$

Part $2$

Plan

E$$:

Keep the current$$ workforce, which is producing

$1$ comma $6001,600$

units per$$ month, and subcontract to meet the rest of the demand. Subcontract cost is

$$$$7575$

per unit.

Part $3$

$$

Plan E

Month

Demand

Production

$($Units$)$

Subcontract$($Units$)$

Ending Inventory

$0$

December

$200200$

$1$

January

$1$ comma $4501,450$

$1$ comma $6001,600$

enter your response here

enter your response here

$2$

February

$1$ comma $7001,700$

$1$ comma $6001,600$

enter your response here

enter your response here

$3$

March

$1$ comma $6001,600$

$1$ comma $6001,600$

enter your response here

enter your response here

$4$

April

$1$ comma $7001,700$

$1$ comma $6001,600$

enter your response here

enter your response here

$5$

May

$2$ comma $3002,300$

$1$ comma $6001,600$

enter your response here

enter your response here

$6$

June

$2$ comma $3002,300$

$1$ comma $6001,600$

enter your response here

enter your response here

$7$

July

$1$ comma $7001,700$

$1$ comma $6001,600$

enter your response here

enter your response here

$8$

August

$1$ comma $3001,300$

$1$ comma $6001,600$

enter your response here

enter your response here

Part $4$

The total subcontracting cost$=$

$$$enter your response here.

$($Enter your response as a whole$$ number.$)$

Part $5$

The total inventory holding cost for January through August$=$

$$$enter your response here.

$($Enter your response as a whole$$ number.$)$

Part $6$

The total$$ cost$,$ excluding normal time labor$$ costs, for Plan E$=$

$$$enter your response here.

$($Enter your response as a whole$$ number.$)$