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.) 0 1 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 $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan 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). 2 January February March April Ending Period Month Demand Production Inventory Stockouts (Units) 200 December January February March April May June July August 3 4 5 6 1,400 1,600 1,800 1,800 7 8 1,400 1,600 May June July August 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
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.) 0 1 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 $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan 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). 2 January February March April Ending Period Month Demand Production Inventory Stockouts (Units) 200 December January February March April May June July August 3 4 5 6 1,400 1,600 1,800 1,800 7 8 1,400 1,600 May June July August 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
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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Operation managemetn
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
February
March
April
The total stockout cost = $
(Enter your response as a whole number.)
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 $125 per unit. Inventory holding cost is $25 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).
Period Month
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.)
0 December
1
January
2
February
3
March
4
April
5
May
6 June
7
July
August
1,400
1,600
1,800
1,800
8
May
June
July
August
1,400
1,600
1,800
1,800
2,200
2,200
1,800
1,400
2,200
2,200
1,800
1,400
Ending
Demand Production Inventory Stockouts (Units)
200
1,775
1,775
1,775
1,775
1,775
1,775
1,775
1,775
Q
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