The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 2,300 June 2,100 January February March April 0 1 2 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 pe 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 3 4 5 6 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) 7 15 Ending Period Month Demand Production Inventory Stockouts (Units) 200 December January February March 1,500 1,700 1,700 1,700 April May June July August July August 1,500 1,700 1,700 1,700 2.300 2,100 1,000 1,500 1,900 1,500 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1.800
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 2,300 June 2,100 January February March April 0 1 2 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 pe 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 3 4 5 6 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) 7 15 Ending Period Month Demand Production Inventory Stockouts (Units) 200 December January February March 1,500 1,700 1,700 1,700 April May June July August July August 1,500 1,700 1,700 1,700 2.300 2,100 1,000 1,500 1,900 1,500 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1.800
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter9: Decision Making Under Uncertainty
Section: Chapter Questions
Problem 30P
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Question
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Operation management
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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
May
February
2,300
2,100
June
July
August
March
April
6
7
15
1,500
1,700
1,700
1,700
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 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
Inventory Stockouts (Units)
200
Period Month Demand Production
0 December
1
January
2
February
3
March
4
April
15
May
June
July
August
1,500
1,700
1,700
1,700
2,300
2,100
1,000
1,500
1,900
1,500
1,800
1,800
1,800
1,800
1,800
1,800
1.800
1.800](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01d01b29-ede7-42ba-8dcd-8c0b18e94cc8%2Ffad9e2c1-f2b4-42e4-a62d-ea2a5e4aa961%2Fjiwr4l5_processed.jpeg&w=3840&q=75)
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
May
February
2,300
2,100
June
July
August
March
April
6
7
15
1,500
1,700
1,700
1,700
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 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
Inventory Stockouts (Units)
200
Period Month Demand Production
0 December
1
January
2
February
3
March
4
April
15
May
June
July
August
1,500
1,700
1,700
1,700
2,300
2,100
1,000
1,500
1,900
1,500
1,800
1,800
1,800
1,800
1,800
1,800
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 $100 per unit. Inventory holding cost is $20 per unit per
month. Ignore any idle-time costs. The plan is called plan C.
Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels.
Conduct your analysis for January through August.
The average monthly demand requirement
units. (Enter your response as a whole number)
In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers)
0
Ending
Period Month Demand Production Inventory Stockouts (Units)
0 December
200
1
January
February
March
April
5 May
June
July
August
2
3
4
6
7
8
1,500
1,700
1,700
1,700
2,300
2,100
1,900
1,500
1,800
1,800
1,800
1,800
1,800
1,800
1,800
1,800
The total stockout cost-$ (Enter your response as a whole number)
The total inventory carrying cost-$ (Enter your response as a whole number)
The total cost, excluding normal time labor costs, is $ (Enter your response as a whole number)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01d01b29-ede7-42ba-8dcd-8c0b18e94cc8%2Ffad9e2c1-f2b4-42e4-a62d-ea2a5e4aa961%2F3iqk5ff_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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 $20 per unit per
month. Ignore any idle-time costs. The plan is called plan C.
Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels.
Conduct your analysis for January through August.
The average monthly demand requirement
units. (Enter your response as a whole number)
In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers)
0
Ending
Period Month Demand Production Inventory Stockouts (Units)
0 December
200
1
January
February
March
April
5 May
June
July
August
2
3
4
6
7
8
1,500
1,700
1,700
1,700
2,300
2,100
1,900
1,500
1,800
1,800
1,800
1,800
1,800
1,800
1,800
1,800
The total stockout cost-$ (Enter your response as a whole number)
The total inventory carrying cost-$ (Enter your response as a whole number)
The total cost, excluding normal time labor costs, is $ (Enter your response as a whole number)
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