The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements...

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The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1200 1,200 0 0 2 August 1300 1,200 0 100 3 September 1200 1,200 0 0 45 October 1700 1,200 0 500 5 November 1650 1,200 0 450 6 December 1650 1,200 0 The total cost, excluding normal time labor costs, for Plan A = $(Enter your response as a whole number.) 450 The S&OP team at Kansas Furniture, led by David Angelow, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate these two plans on an incremental cost basis: Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional units at a $70 per unit premium cost. Subcontracting capacity is limited to 500 units per month. (Enter all responses as whole numbers). Ending Month Demand Production Inventory Subcontract (Units) 1 July 1200 1,200 0 0 2 August 1300 1,200 0 100 3 September 1200 1,200 0 0 45 October 1700 1,200 0 500 5 November 1650 1,200 0 450 6 December 1650 1,200 0 The total cost, excluding normal time labor costs, for Plan A = $(Enter your response as a whole number.) 450