The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:May2,100JanuaryFebruary1,4501,7001,700June2,300July1,900MarchApril1,700August1,300Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit. Inventory holding cost is $25 per unit permonth. Ignore any idle-time costs. Evaluate the following plan.This exercise contains only Plan E.Plan E: Keep the current workforce, which is producing 1,600 units per month, and subcontract to meet the rest of the demand. Subcontract cost is $75 per unit.Month10 December1 January2 February3 March4 April5 May6 June7 July8 AugustDemand1,4501,7001,7001,7002,1002,3001,9001,300Production(Units)1,6001,6001,6001,6001,6001,6001,6001,600Plan EEndingSubcontract (Units) Inventory200The total subcontracting cost = $(Enter your response as a whole number.)(Enter your response as a whole number.)The total inventory holding cost for January through August = $The total cost, excluding normal time labor costs, for Plan E = $. (Enter your response as a whole number.)

Let me state the given data, The table data is shown below,…

The total subcontracting cost = $ The total inventory holding cost for January through August = $ (Enter your response as a whole number.) The total cost, excluding normal time labor costs, for Plan E = $. (Enter your response as a whole number.) (Enter your response as a whole number.)

The total subcontracting cost = $ The total inventory holding cost for January through August = $ (Enter your response as a whole number.) The total cost, excluding normal time labor costs, for Plan E = $. (Enter your response as a whole number.) (Enter your response as a whole number.)

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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