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Operations Management
terprises, Tem Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March 1,500 1,500 1,700 May 2,200 2,100 1,900 June July April 1,700 August 1.300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $70 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plan. This oxerciso 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 $80 per unit. Plan E Production Subcontract Ending Inventory Month Demand (Units) (Units) 0 December 1 January 200 100 200 200 1,500 1,600 2 February 1,500 1,600 3 March 1,700 1,600 4 April 1,700 1,600 5 May 6 June 7 July 8 August 200 200 200 2.200 1,600 400 2,100 1,600 500 300 1,900 1,600 300 1,300 1,600 300 The total subcontracting cost $06000. (Entor your response as a whole number.) The total inventory holding cost for January through August $37500. (Enter your response as a whole number.) The total cost, excluding normal time labor costs, for Plan E $ (Enter your rosponse as a whole number.)

terprises, Tem Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February March 1,500 1,500 1,700 May 2,200 2,100 1,900 June July April 1,700 August 1.300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $70 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. Evaluate the following plan. This oxerciso 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 $80 per unit. Plan E Production Subcontract Ending Inventory Month Demand (Units) (Units) 0 December 1 January 200 100 200 200 1,500 1,600 2 February 1,500 1,600 3 March 1,700 1,600 4 April 1,700 1,600 5 May 6 June 7 July 8 August 200 200 200 2.200 1,600 400 2,100 1,600 500 300 1,900 1,600 300 1,300 1,600 300 The total subcontracting cost $06000. (Entor your response as a whole number.) The total inventory holding cost for January through August $37500. (Enter your response as a whole number.) The total cost, excluding normal time labor costs, for Plan E $ (Enter your rosponse as a whole number.)

Marketing
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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please answer all the parts within 30 minutes. Make sure you answer all the parts else i will give negative ratings for sure. either solve all the parts or pass it so that other person can solve all parts. dont answer half.
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January February 1,500 May 2,200 1,500 1,700 1,700 June 2,100 March July 1,900 April August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $70 per unit. Inventory holding cost is $25 per unit per month. Ignore any idie-time costs. Evaluate the following plan. This exorcise 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 $80 per unit. Plan E Production Subcontract Ending Inventory 200 Month Demand (Units) (Units) O December 1 January 2 February 1,500 1,600 100 1,500 1,600 200 3 March 1,700 1,600 200 4 April 1,700 1,600 200 5 May 2.200 1,600 200 200 300 300 400 6 June 2,100 1,600 500 7 July 8 August 1,900 1,600 300 1,300 1,600 The total subcontracting cost = $96000. (Enter your response as a whole number.) The total inventory holding cost for January through August = $37500. (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.)
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 1,500 May 2,200 1,500 1,700 1,700 June 2,100 March July 1,900 April August 1,300 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $70 per unit. Inventory holding cost is $25 per unit per month. Ignore any idie-time costs. Evaluate the following plan. This exorcise 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 $80 per unit. Plan E Production Subcontract Ending Inventory 200 Month Demand (Units) (Units) O December 1 January 2 February 1,500 1,600 100 1,500 1,600 200 3 March 1,700 1,600 200 4 April 1,700 1,600 200 5 May 2.200 1,600 200 200 300 300 400 6 June 2,100 1,600 500 7 July 8 August 1,900 1,600 300 1,300 1,600 The total subcontracting cost = $96000. (Enter your response as a whole number.) The total inventory holding cost for January through August = $37500. (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.)
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