The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract addtional units at a $60 per unit premium cost Subcontracting capacity is limited to 500 units per month (Entor all responses as whole numbers) Ending Subcontract Month 1 July 2 August 3 September Demand 1200 Production Inventory 1,200 (Units) 1300 1,200 1200 1,200 4. October 1700 1,200 5 November 6 December 1650 1,200 1400 1,200
The S&OP team at Kansas Furniture, has received estimates of demand requirements as shown in the table. Assuming one-time stockout costs for lost sales of per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory, evaluate the following plan on an incremental cost basis Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract addtional units at a $60 per unit premium cost Subcontracting capacity is limited to 500 units per month (Entor all responses as whole numbers) Ending Subcontract Month 1 July 2 August 3 September Demand 1200 Production Inventory 1,200 (Units) 1300 1,200 1200 1,200 4. October 1700 1,200 5 November 6 December 1650 1,200 1400 1,200
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 S&OP team at Kansas Furniture, has received estimates of demand requiroments as shown in the table. Assuming one-time stockout costs for lost sales of $100
per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory evaluate the following plan on an incremental cost basis
Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional
units at a $60 per unit premium cost Subcontracting capacity is limited to 500 units per month (Entor all responses as whole numbers)
ETIT
Ending
Production Inventory
1,200
Subcontract
Month
1 July
2 August
3 September
Demand
1200
(Units)
1300
1,200
1200
1,200
October
1700
1,200
1,200
5 November
6 December
1650
1400
1,200](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2c9a585c-fc40-4f26-9584-ce62e9465518%2F6e0d8f0e-9c57-4472-a3b8-5e954ce10339%2Fs2sod2_processed.jpeg&w=3840&q=75)
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The S&OP team at Kansas Furniture, has received estimates of demand requiroments as shown in the table. Assuming one-time stockout costs for lost sales of $100
per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory evaluate the following plan on an incremental cost basis
Plan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additional
units at a $60 per unit premium cost Subcontracting capacity is limited to 500 units per month (Entor all responses as whole numbers)
ETIT
Ending
Production Inventory
1,200
Subcontract
Month
1 July
2 August
3 September
Demand
1200
(Units)
1300
1,200
1200
1,200
October
1700
1,200
1,200
5 November
6 December
1650
1400
1,200
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