Question: Operations management help needed, I will like or give thumbs up if answer is correct The following is the forecasted demand for Olives Company over
Operations management help needed, I will like or give thumbs up if answer is correct


The following is the forecasted demand for Olives Company over the next few months. Olives Company plans on using a constant production of 9,250 units a month at a $893 per unit cost. The company has an inventory balance of 300 units at the beginning of January. Stockout cost due to loss sale is estimated to be $214 per unit. Monthly inventory holding cost are $16 per unit. Olives Company can produce an additional 10% of its' regular production in overtime at the cost of $80 more per unit. Assume that Olives Company will avoid stockout if possible Inder this plan how much will will Olives Company spend on inventory holding Olives Company plans on using a constant production of 9,250 units a month at a $893 per unit cost. The company has an inventory balance of 300 units at the beginning of January. Stockout cost due to loss sale is estimated to be $214 per unit. Monthly inventory holding cost are $16 per unit. Olives Company can produce an additional 10% of its' regular production in overtime at the cost of $80 more per unit. Assume that Olives Company will avoid stockout if possible Under this plan how much will will Olives Company spend on inventory holding cost (answer to the nearest whole number)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
