The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 1,400 1,600 June 1,800 July 1,800 August The total stockout cost = $ January February March April 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 $100 per unit. Inventory holding cost is $25 per un month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1775 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). D Ending Period Month Demand Production Inventory Stockouts (Units) 200 575 750 725 700 275 0 0 375 0 December 1 January February March April May June 2 3 4 5 6 7 8 July August (Enter your response as a whole number.) 1,400 1,600 1,800 2,200 2,200 1,800 1,400 1,800 2,200 2,200 1,800 1,400 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 ០៥g 。。。。。 150 25
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 1,400 1,600 June 1,800 July 1,800 August The total stockout cost = $ January February March April 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 $100 per unit. Inventory holding cost is $25 per un month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1775 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). D Ending Period Month Demand Production Inventory Stockouts (Units) 200 575 750 725 700 275 0 0 375 0 December 1 January February March April May June 2 3 4 5 6 7 8 July August (Enter your response as a whole number.) 1,400 1,600 1,800 2,200 2,200 1,800 1,400 1,800 2,200 2,200 1,800 1,400 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 ០៥g 。。。。。 150 25
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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Question
Calculate Total Cost of Stockout
Transcribed Image Text:The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
May
January
February
June
July
March
April
August
The total stockout cost = $
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 $100 per unit. Inventory holding cost is $25 per unit p
month. Ignore any idle-time costs. The plan is called plan C.
Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels.
Conduct your analysis for January through August.
The average monthly demand requirement = 1775 units. (Enter your response as a whole number.)
In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers).
Ending
Period Month Demand Production Inventory Stockouts (Units)
December
200
January
575
February
750
March
725
April
700
May
275
June
0
July
0
August
375
0
1
2
3
4
5
6
7
8
1,400
1,600
1,800
1,800
|. (Enter your response as a whole number.)
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
2,200
2,200
1,800
1,400
1,775
1,775
1,775
1,775
1,775
1,775
1,775
1,775
0
0
0
0
0
150
25
0
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