Question: Homework: Module 11: Homework 6 - Aggregate Planning Save Score: 0 of 5 pts 1 of 3 (0 complete) HW Score: 0%, 0 of 15

Homework: Module 11: Homework 6 - Aggregate

Homework: Module 11: Homework 6 - Aggregate Planning Save Score: 0 of 5 pts 1 of 3 (0 complete) HW Score: 0%, 0 of 15 pts Problem 13.9A Question Help The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $125 per unit, inventory carrying costs of $30 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,100 units per month and subcontract additional units at a $65 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Subcontract Month July Ending Demand Production Inventory 1300 1,100 (Units) 2 August 1150 1,100 0 1100 1,100 0 3 September October 1600 1,100 0 5 November 1900 1,100 0 6 December 1200 1,100 0

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