Plan

E:

Keep the current workforce, which is producing

1,600

units per month, and subcontract to meet the rest of the demand. Subcontract cost is

$75

per unit. Subcontracting capacity is limited to

500

units per month. The warehouse and overtime constraints from Plan D do not apply to this plan.

Part 9

						Plan E
	Month	Demand	Production (Units)			Subcontract (Units)	Ending Inventory
0	December						200
1	January	1,500	1,600			5050	enter your response here
2	February	1,500	1,600			7575	enter your response here
3	March	1,800	1,600			3838	enter your response here
4	April	1,900	1,600			3737	enter your response here
5	May	2,100	1,600			enter your response here	enter your response here
6	June	2,100	1,600			enter your response here	enter your response here
7	July	1,700	1,600			enter your response here	enter your response here
8	August	1,400	1,600			enter your response here	enter your response here

Part 10

The total subcontracting cost =

$enter your response here.

(Enter your response as a whole number.)

Part 11

The total inventory holding cost for January through August =

$enter your response here.

(Enter your response as a whole number.)

Part 12

The total cost, excluding normal time labor costs, for Plan E =

$enter your response here.

(Enter your response as a whole number.)