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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March April Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 1,400 1,600 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 $65 per unit. Inventory holding cost is $20 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 $75 per unit. Demand 1,400 1,600 1,800 1,800 2,200 2,100 1,800 1,400 May June July August Production (Units) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 2,200 2,100 1,800 1,400 Plan E Subcontract (Units) Ending Inventory 200

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March April Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August 1,400 1,600 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 $65 per unit. Inventory holding cost is $20 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 $75 per unit. Demand 1,400 1,600 1,800 1,800 2,200 2,100 1,800 1,400 May June July August Production (Units) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 2,200 2,100 1,800 1,400 Plan E Subcontract (Units) Ending Inventory 200

Practical Management Science
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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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: alculator DEPREFERESSESES Cara be 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 $20 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 $75 per unit. mummill M Pla $100433443 January February March April MESS Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August Ask my instructor 1,400 1,600 1,800 1,800 Demand 1.400 1,600 1,800 1,800 2,200 2,100 1,800 1.400 May June July August Production (Units) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 2,200 2.100 1.800 1,400 S Plan E Subcontract (Units) (35558 Clear all m Ending Inventory 200 pen Check answer
Transcribed Image Text:The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: alculator DEPREFERESSESES Cara be 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 $20 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 $75 per unit. mummill M Pla $100433443 January February March April MESS Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August Ask my instructor 1,400 1,600 1,800 1,800 Demand 1.400 1,600 1,800 1,800 2,200 2,100 1,800 1.400 May June July August Production (Units) 1,600 1,600 1,600 1,600 1,600 1,600 1,600 1,600 2,200 2.100 1.800 1,400 S Plan E Subcontract (Units) (35558 Clear all m Ending Inventory 200 pen Check answer
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