Question: Homework: Chapter 13 Homework Question 3, Problem 13.3 Part 1 of 1 1 HW Score: 66.32', 3.32 of 5 points O Points: 0 of 1

Homework: Chapter 13 Homework Question 3, Problem

Homework: Chapter 13 Homework Question 3, Problem 13.3 Part 1 of 1 1 HW Score: 66.32', 3.32 of 5 points O Points: 0 of 1 Save The pres dent of Hill Enterprises. Terri Hill. projects the firm's aggregate demand requirements over the next 8 months as folows. January 1.400 February 1,500 March 1.800 April 1,200 May June July August 2.300 2 2010 1.900 1.900 Her operations manager is cons dering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is S125 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 sve to execute a strategy that produces the quantity demanded in the prior month. The December derrand and rate of production are both 1,800 units per month. The cos.of hiring additional workers is $55 per unit. The cost of laying off workers is $50 per unit. Evaluate this plari. (Enter all responses as wale numbers.) Note: Bathuring 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) Stockouts (Units) Demand 1,600 1,400 1,500 1.800 Endling Inventory 200 575 Production 1,600 1.800 750 725 Period Month ! 0 December 1 January 2 February March 4 All 5 May June 7 July 8 August 0 275 1.800 2.300 2.200 1,900 1,900 1,500 1,800 1,800 2,300 2.200 1.900 0 0 375 150 25

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