Question: PLEASE EXPLAIN HOW TO DO IT!!!! Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand.

PLEASE EXPLAIN HOW TO DO IT!!!!

PLEASE EXPLAIN HOW TO DO IT!!!! Her operations

Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $70 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. Plan D: Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of $55 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or inventory are adequate to cover demand. Plan D Production (Units) O.T. Production (Units) Stockouts (Units) Demand 1,600 0 0 1,450 1,600 1,600 Ending Inventory 200 350 350 350 150 0 0 Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 0 0 0 1,600 1,600 1,600 1,600 1,600 1,600 320 0 1,800 2,300 2,100 1,900 1,300 230 320 0 180 0 0 300 0 1,600 300 0 The total overtime production cost = $ 51700. (Enter your response as a whole number.) The total inventory holding cost for January through August = $ 37500. (Enter your response as a whole number.) The total stockout cost = $ 28700. (Enter your response as a whole number.) The total cost, excluding normal time labor costs, for Plan D = $ 117900. (Enter your response as a whole number.) 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 $80 per unit. Subcontracting capacity is limited to 550 units per month. The warehouse and overtime constraints from Plan D do not apply to this plan. Plan E Production (Units) Subcontract (Units) Ending Inventory Demand 200 1,450 Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 1,600 1,600 1,800 1,600 1,600 1,600 1,600 2.300 2,100 1,900 1,300 1,600 1,600 1,600 1,600

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