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January February March April 1,400 1,500 1,600 1,800 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August May June July August Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). Demand Production 1,400 1,500 1,600 2,200 2,100 1,800 1,400 1,800 2,200 2,100 1,800 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Ending Inventory 200 Subcontract Units C 511

January February March April 1,400 1,500 1,600 1,800 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month 0 December 1 January 2 February 3 March 4 April 5 May 6 June 7 July 8 August May June July August Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August. In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). Demand Production 1,400 1,500 1,600 2,200 2,100 1,800 1,400 1,800 2,200 2,100 1,800 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Ending Inventory 200 Subcontract Units C 511

Practical Management Science
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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January February March April Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month December 0 1 January 2 February March 3 4 5 Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August. 6 7 1,400 1,500 1,600 1,800 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). 8 May June July August April May June July August 2,200 2,100 1,800 1,400 Demand Production 1,400 1,500 1,600 1,800 2,200 2,100 1,800 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Ending Inventory 200 Subcontract Units 5111
Transcribed Image Text:January February March April Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month December 0 1 January 2 February March 3 4 5 Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August. 6 7 1,400 1,500 1,600 1,800 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). 8 May June July August April May June July August 2,200 2,100 1,800 1,400 Demand Production 1,400 1,500 1,600 1,800 2,200 2,100 1,800 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Ending Inventory 200 Subcontract Units 5111
< 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 1,400 1,500 1,600 1,800 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month 0 December 1 January 2 February 3 March 4 Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August. April May June 7 July 56 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). May June July August Demand 1,400 1,500 1,600 1,800 2,200 2,100 1,800 2,200 2,100 1,800 1,400 Production 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Ending Inventory 200 Subcontract Units
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 1,400 1,500 1,600 1,800 Her operations manager is considering a new plan, which begins in January with 200 units on hand and ends with zero inventory. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month 0 December 1 January 2 February 3 March 4 Plan B: Produce at a constant rate of 1,400 units per month, which will meet minimum demands. Then use subcontracting, with additional units at a premium price of $75 per unit. Subcontracting capacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through August. April May June 7 July 56 In order to arrive at the costs, first compute the ending inventory and subcontracting units for each month by filling in the table below (enter your responses as whole numbers). May June July August Demand 1,400 1,500 1,600 1,800 2,200 2,100 1,800 2,200 2,100 1,800 1,400 Production 1,400 1,400 1,400 1,400 1,400 1,400 1,400 Ending Inventory 200 Subcontract Units
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