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

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

January with 200 units of inventory on hand Stockout cost of lost

Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand Stockout cost of lost sales is $125 per unit Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan A. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $80 per unit. Evaluate this plan (Enter all responses as whole numbers.) Note: Both hining and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,400 in February incurs a cost of layoff for 200 units in February Hire (Units) Layoff (Units) Ending Inventory 200 Stockouts (Units) Period Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August Demand 1,600 1,400 1,500 1,700 1.900 2.300 2,200 1.900 1.900 Production 1,600 1,600 1,400 1,500 1,700 1,900 2,300 2.200 1,900 JUUUUUU The total cost of hirings = 5 (Enter your response as a whole number) The total cost of layoffs = $(Enter your response as a whole number) The total inventory carrying cost = $(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 is = $1. (Enter your response as a whole 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 Accounting Questions!