Question: The Plan D, refers to Plan A. Sorry for the confusion. The presicent of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over

The Plan D, refers to Plan A. Sorry for the

The Plan D, refers to Plan A. Sorry for the

The Plan D, refers to Plan A. Sorry for the confusion.

The presicent of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,200 May February 1,600 June March 1,700 July April 1,800 August 2,300 2,300 1,800 1,800 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 $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan A Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $55 per unit. The cost of laying off workers is $75 per unit Evaluate this plan. (Enter all responses as whole numbers.) Note: Borh hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,200 in February incurs a cost of layoff for 400 units in February Hire (Units) Layoff (Units) Ending Inventory 200 Stockouts (Units) Demand 1,600 1,200 1,600 Period Month 0 December January February March 4 April 5 May 6 June 7 July 1,700 1,800 2,300 2,300 1.800 1,800 Production 1,600 1,600 1,200 1,600 1,700 1,800 2.300 2,300 1,800 8 August Calculate O.T. Production, Ending Inventory, and Stockouts (units) The total overtime procution cost= $____ The total inventory holding cost for January through August= $____ The total stockout cost=$__--- The total cost, excluding normal time labor costs, for Plan D= $_____

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