Homework: Chapter 13 3 Aggregate Planning and S&OP Question 8, Problem 13.6 - Bookmatch Part 1 of 9 HW Score: 62.28%. 5.61 of 9 points Points: 0 of 1 Save F The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,400 May 2,200 February 1,600 June 2,200 March 1,800 July 1,800 April 1,800 August 1,800 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 $100 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. Plan D. Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of $50 per unit. A warehouse now constrains the maximum allowable inventory on hand to 400 units or less. If production and/or inventory are adequate, do not produce any units in overtime. Note: Do not produce in overtime if production or inventory are adequate to cover demand, Plan D Production (Units) O.T. Production (Units) Ending Inventory 200 Stockouts (Units) Demand Month 0 December 1 January 2 February 3 March 4 April 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,800 1,600 1,600 1,600 1.600 1,600 1,600 1,600 1,600 5 May 6 June 7 July 8 August Clear all Check answer Video Etext pages Get more help