The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 monthsas follows:alculatorDEPREFERESSESESCara beHer 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 $20 per unit per month. Ignore any idle-time costsEvaluate 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 ofthe demand. Subcontract cost is $75 per unit.mummillMPla$100433443JanuaryFebruaryMarchAprilMESSMonth0 December1 January2 February3 March4 April5 May6 June7 July8 AugustAsk my instructor1,4001,6001,8001,800Demand1.4001,6001,8001,8002,2002,1001,8001.400MayJuneJulyAugustProduction(Units)1,6001,6001,6001,6001,6001,6001,6001,6002,2002.1001.8001,400SPlan ESubcontract(Units)(35558Clear allmEndingInventory200penCheck answer

Find the Calculation methods below: Given details: Month Demand Production(Units) 0 December…

Answered: The president of Hill Enterprises,…

Marketing

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ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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What does sales and operations planning serve? Explain the S&OP procedure?

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