The total subcontracting cost =

$enter your response here.

(Enter your response as a whole number.)

Part 5

The total inventory holding cost for January through August =

$enter your response here.

(Enter your response as a whole number.)

Part 6

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

$enter your response here.

(Enter your response as a whole number.)

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 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 $65 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plan. This exercise contains only Plan E. 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