Question: The total subcontracting cost = $ 307,500. (Enter your response as a whole number.) The total inventory carrying cost = $ 4,000 (Enter your response

The total subcontracting cost = $ 307,500. (Enter
The total subcontracting cost = $ 307,500. (Enter
The total subcontracting cost = $ 307,500. (Enter your response as a whole number.) The total inventory carrying cost = $ 4,000" (Enter your response as a whole number) The total cost, excluding normal time labor costs, is = $ 311,500. (Enter your response as a whole number.) 2,300 The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,200 May 2,300 February 1,600 June March 1,800 July 1,800 April 1,700 August 1,500 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month Ignore any idle time costs. The plan is called plan B. Plan B: Produse at a constant rate of 1,200 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 1,100 units per month. Evaluate this plan by computing the costs for January through August In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). Subcontract Units Demand Ending Inventory 200 Production Period Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July B August 1,200 1,600 1,800 1,700 2,300 2,300 1,800 1,500 1.200 1,200 1,200 1,200 1,200 1,200 1,200 1,200

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!