Question: Her operations maneger is considering a new plan, which begins in January with 200 unts on hand and endis with zero inventory Slockout cost of
Her operations maneger is considering a new plan, which begins in January with 200 unts on hand and endis with zero inventory Slockout cost of lost sales is $125 per unit. Inventory holding cost i $20 per unit per month, Ignore any lite time oosts. The plan is coltod plan B. Pian B: Produce at a constant rate of 1,200 units per month, which wilt meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unt. Subcontricting casacily is limited to 1,100 unite per month. Evaluate this plan by computing the costs for January through August. In order to artive at the costs, fint compute the ending inventory and subcontracting units for each month by siling in the table below (enter your respanses as whole numbers)
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