Assignment:
Problem 13.9A Question Help The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:
|
January
|
1400
|
May
|
2.200
|
|
February
|
1.600
|
June
|
2200
|
|
March
|
1.800
|
July
|
1.800
|
|
Argil
|
1.900
|
August
|
1.400
|
Her operations manager is considering a new plan, which begins in Janua with 200 units of inventory on hand. Stockout cost of lost sales is $65 per unit. Inventory holding cost is $20 per unit per month. ignore any idle-time costs, Evaluate the following plan.
This exercise contains only Plan D.
Plan D. Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of S55 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less.
Note: Do nof produce in overtime if p or inventory are adequate to cover demand.
Plan D
Production Production Ending Stockouts
Month Demand (unit) (unit) Inventory (Units)
0 December 200