The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: 1,500 May 1,700 June 1,700 July 1,700 August January February March April 4 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 $20 per un per month. Ignore any idle-time costs. The plan is called plan C. Period Month Demand Production December 0 1 January 2 February 3 March April May June 5 6 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 = 1800 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 1,500 1,700 1,700 1,700 2,300 2.100 2,300 2,100 1,800 1,800 1,900 1,500 1,800 1,800 1,800 1.800 Ending Inventory Stockouts (Units) 200

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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:
May
1,500
1,700
1,700
June
1,700
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 $20 per unit
per 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 = 1800 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).
D₂₁
0 December
1
January
2
February
3
March
4
April
5
May
June
July
August
6
7
8
July
August
Ending
Period Month Demand Production Inventory Stockouts (Units)
200
1,500
1,700
1,700
1,700
2,300
2,100
1,900
1,500
2,300
2,100
1,900
1,500
1,800
1,800
1,800
1,800
1,800
1,800
1,800
1,800
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 1,500 1,700 1,700 June 1,700 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 $20 per unit per 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 = 1800 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). D₂₁ 0 December 1 January 2 February 3 March 4 April 5 May June July August 6 7 8 July August Ending Period Month Demand Production Inventory Stockouts (Units) 200 1,500 1,700 1,700 1,700 2,300 2,100 1,900 1,500 2,300 2,100 1,900 1,500 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800
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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:
May
January
February
1,500
1,700
1,700
June
July
March
April
1,700
August
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 $20 per unit per 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 = 1800 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
2,300
2,100
1,900
1,500
Ending
Period Month Demand Production Inventory Stockouts (Units)
0 December
200
1 January
1,500
500
2 February
1,700
300
M
3 March
1,700
300
4 April
1,700
300
5 May
2,300
0
6 June
2,100
0
7
July
1,900
100
8 August
500
1,500
1,800
1,800
1,800
1,800
1,800
1,800
1,800
1,800
ܘ ܘ ܘ ܘ
300
100
0
0
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 1,500 1,700 1,700 June July March April 1,700 August 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 $20 per unit per 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 = 1800 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 2,300 2,100 1,900 1,500 Ending Period Month Demand Production Inventory Stockouts (Units) 0 December 200 1 January 1,500 500 2 February 1,700 300 M 3 March 1,700 300 4 April 1,700 300 5 May 2,300 0 6 June 2,100 0 7 July 1,900 100 8 August 500 1,500 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 ܘ ܘ ܘ ܘ 300 100 0 0
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