Points: 0 of 1SaveThe S&OP team at Kansas Furniture, has received estimates of demand requiroments as shown in the table. Assuming one-time stockout costs for lost sales of $100per unit, inventory carrying costs of $25 per unit per month, and zero beginning and ending inventory evaluate the following plan on an incremental cost basisPlan A: Produce at a steady rate (equal to minimum requirements) of 1,200 units per month and subcontract additionalunits at a $60 per unit premium cost Subcontracting capacity is limited to 500 units per month (Entor all responses as whole numbers)ETITEndingProduction Inventory1,200SubcontractMonth1 July2 August3 SeptemberDemand1200(Units)13001,20012001,200October17001,2001,2005 November6 December165014001,200

ANSWER : Month Demand(D) Production (P) Ending Inventory (E) Subcontract Units 1 July 1200…

Answered: The S&OP team at Kansas Furniture, has…

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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