terprises, Tem Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March 1,500 1,500 1,700 May 2,200 2,100 1,900 June July April 1,700 August 1.300 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 plan. This oxerciso 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. Plan E Production Subcontract Ending Inventory Month Demand (Units) (Units) 0 December 1 January 200 100 200 200 1,500 1,600 2 February 1,500 1,600 3 March 1,700 1,600 4 April 1,700 1,600 5 May 6 June 7 July 8 August 200 200 200 2.200 1,600 400 2,100 1,600 500 300 1,900 1,600 300 1,300 1,600 300 The total subcontracting cost $06000. (Entor 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 cost, excluding normal time labor costs, for Plan E $ (Enter your rosponse as a whole number.)
terprises, Tem Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March 1,500 1,500 1,700 May 2,200 2,100 1,900 June July April 1,700 August 1.300 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 plan. This oxerciso 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. Plan E Production Subcontract Ending Inventory Month Demand (Units) (Units) 0 December 1 January 200 100 200 200 1,500 1,600 2 February 1,500 1,600 3 March 1,700 1,600 4 April 1,700 1,600 5 May 6 June 7 July 8 August 200 200 200 2.200 1,600 400 2,100 1,600 500 300 1,900 1,600 300 1,300 1,600 300 The total subcontracting cost $06000. (Entor 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 cost, excluding normal time labor costs, for Plan E $ (Enter your rosponse as a whole number.)
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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please answer all the parts within 30 minutes. Make sure you answer all the parts else i will give negative ratings for sure. either solve all the parts or pass it so that other person can solve all parts. dont answer half.
Transcribed Image Text:The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
January
February
1,500
May
2,200
1,500
1,700
1,700
June
2,100
March
July
1,900
April
August
1,300
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 idie-time costs. Evaluate the following plan.
This exorcise 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.
Plan E
Production
Subcontract
Ending
Inventory
200
Month
Demand
(Units)
(Units)
O December
1 January
2 February
1,500
1,600
100
1,500
1,600
200
3 March
1,700
1,600
200
4 April
1,700
1,600
200
5 May
2.200
1,600
200
200
300
300
400
6 June
2,100
1,600
500
7 July
8 August
1,900
1,600
300
1,300
1,600
The total subcontracting cost = $96000. (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 cost, excluding normal time labor costs, for Plan E = $ (Enter your response as a whole number.)
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