The president of Hill​ Enterprises, Terri​ Hill, projects the​ firm's aggregate demand requirements over the next 8 months as​ follows:     January 1,400 May 2,100 February 1,500 June 2,300 March 1,800 July 1,900 April 1,700 August 1,400   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 ​$125 per unit. Inventory holding cost is ​$20 per unit per month. Ignore any​ idle-time costs. The plan is called plan B.   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 ​$80 per unit. Subcontracting capacity is limited to 900 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).                                                                                                                             Period   Month Demand   Production Ending Inventory Subcontract Units 0 December     200   1 January 1,400 1,400 nothing nothing 2 February 1,500 1,400 nothing nothing 3 March 1,800 1,400 nothing nothing 4 April 1,700 1,400 nothing nothing 5 May 2,100 1,400 nothing nothing 6 June 2,300 1,400 nothing nothing 7 July 1,900 1,400 nothing nothing 8 August 1,400 1,400 nothing nothing

Practical Management Science
6th Edition
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Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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The president of Hill​ Enterprises, Terri​ Hill, projects the​ firm's aggregate demand requirements over the next 8 months as​ follows:  
 
January
1,400
May
2,100
February
1,500
June
2,300
March
1,800
July
1,900
April
1,700
August
1,400
 
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
​$125
per unit. Inventory holding cost is
​$20
per unit per month. Ignore any​ idle-time costs. The plan is called plan B.
 
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
​$80
per unit. Subcontracting capacity is limited to
900
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).
                                                                                                                           
Period
 
Month
Demand
 
Production
Ending Inventory
Subcontract Units
0
December
 
 
200
 
1
January
1,400
1,400
nothing
nothing
2
February
1,500
1,400
nothing
nothing
3
March
1,800
1,400
nothing
nothing
4
April
1,700
1,400
nothing
nothing
5
May
2,100
1,400
nothing
nothing
6
June
2,300
1,400
nothing
nothing
7
July
1,900
1,400
nothing
nothing
8
August
1,400
1,400
nothing
nothing
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