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Operations Management
The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 1,400 1,600 June 1,800 July 1,800 August The total stockout cost = $ January February March April 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 $100 per unit. Inventory holding cost is $25 per un month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1775 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). D Ending Period Month Demand Production Inventory Stockouts (Units) 200 575 750 725 700 275 0 0 375 0 December 1 January February March April May June 2 3 4 5 6 7 8 July August (Enter your response as a whole number.) 1,400 1,600 1,800 2,200 2,200 1,800 1,400 1,800 2,200 2,200 1,800 1,400 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 ០៥g 。。。。。 150 25

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May 1,400 1,600 June 1,800 July 1,800 August The total stockout cost = $ January February March April 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 $100 per unit. Inventory holding cost is $25 per un month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1775 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). D Ending Period Month Demand Production Inventory Stockouts (Units) 200 575 750 725 700 275 0 0 375 0 December 1 January February March April May June 2 3 4 5 6 7 8 July August (Enter your response as a whole number.) 1,400 1,600 1,800 2,200 2,200 1,800 1,400 1,800 2,200 2,200 1,800 1,400 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 ០៥g 。。。。。 150 25

Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
ChapterC: Cases
Section: Chapter Questions
Problem 5.1SC: Scenario 3 Ben Gibson, the purchasing manager at Coastal Products, was reviewing purchasing...
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Calculate Total Cost of Stockout

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May January February June July March April August The total stockout cost = $ 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 $100 per unit. Inventory holding cost is $25 per unit p month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1775 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). Ending Period Month Demand Production Inventory Stockouts (Units) December 200 January 575 February 750 March 725 April 700 May 275 June 0 July 0 August 375 0 1 2 3 4 5 6 7 8 1,400 1,600 1,800 1,800 |. (Enter your response as a whole number.) 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,400 2,200 2,200 1,800 1,400 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 0 0 0 0 0 150 25 0
Transcribed Image Text:The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: May January February June July March April August The total stockout cost = $ 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 $100 per unit. Inventory holding cost is $25 per unit p month. Ignore any idle-time costs. The plan is called plan C. Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average gross requirements excluding initial inventory and allow varying inventory levels. Conduct your analysis for January through August. The average monthly demand requirement = 1775 units. (Enter your response as a whole number.) In order to arrive at the costs, first compute the ending inventory and stockout units for each month by filling in the table below (enter your responses as whole numbers). Ending Period Month Demand Production Inventory Stockouts (Units) December 200 January 575 February 750 March 725 April 700 May 275 June 0 July 0 August 375 0 1 2 3 4 5 6 7 8 1,400 1,600 1,800 1,800 |. (Enter your response as a whole number.) 1,400 1,600 1,800 1,800 2,200 2,200 1,800 1,400 2,200 2,200 1,800 1,400 1,775 1,775 1,775 1,775 1,775 1,775 1,775 1,775 0 0 0 0 0 150 25 0
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