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Part 1 of 2 www Score: 0%, U of 10 points O Points: 0 of 5 Save 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 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Subcontract Month July Demand Production Inventory 1000 1.000 0 (Units) 0 2 August 1200 1,000 3 September 1400 1.000 October 1800 1,000 n 0 5 November 1800 1,000 0 6 December 1600 1,000 0 Part 1 of 2 www Score: 0%, U of 10 points O Points: 0 of 5 Save 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 1,000 units per month and subcontract additional units at a $60 per unit premium cost. Subcontracting capacity is limited to 800 units per month. (Enter all responses as whole numbers). Ending Subcontract Month July Demand Production Inventory 1000 1.000 0 (Units) 0 2 August 1200 1,000 3 September 1400 1.000 October 1800 1,000 n 0 5 November 1800 1,000 0 6 December 1600 1,000 0
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