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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next January May 1,500 1,600 June February March April 1,600 1,900 2 3 4 5 6 July August 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 $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month Demand Production 0 December 1 January February March April May June July August 7 8 Plan B: Produce at a constant rate of 1,300 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 1,000 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). 1,500 1,600 1,600 1,900 2,200 2,300 1,700 1,300 months as follows: 2,200 2,300 1,700 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Ending Inventory 200 200 300 300 600 900 1000 400 0 Subcontract Units

The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next January May 1,500 1,600 June February March April 1,600 1,900 2 3 4 5 6 July August 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 $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. Period Month Demand Production 0 December 1 January February March April May June July August 7 8 Plan B: Produce at a constant rate of 1,300 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 1,000 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). 1,500 1,600 1,600 1,900 2,200 2,300 1,700 1,300 months as follows: 2,200 2,300 1,700 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Ending Inventory 200 200 300 300 600 900 1000 400 0 Subcontract Units

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 5SC: If during the following year it is predicted that each comedy skit will generate 30 thousand and...
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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: May January February 2,200 2,300 June July 1,700 March April August 1,300 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 $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. 1,500 1,600 1,600 1,900 Plan B: Produce at a constant rate of 1,300 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 1,000 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). Get more help. Period 0 Month December January 1 2 February 3 March 4 April 5 May 6 June 7 July 8 August Demand Production 1,500 1,600 1,600 1,900 2,200 2,300 1,700 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Ending Inventory 200 200 300 300 600 900 1000 400 0 Subcontract Units Clear all Check answer
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 2,200 2,300 June July 1,700 March April August 1,300 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 $20 per unit per month. Ignore any idle-time costs. The plan is called plan B. 1,500 1,600 1,600 1,900 Plan B: Produce at a constant rate of 1,300 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 1,000 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). Get more help. Period 0 Month December January 1 2 February 3 March 4 April 5 May 6 June 7 July 8 August Demand Production 1,500 1,600 1,600 1,900 2,200 2,300 1,700 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 1,300 Ending Inventory 200 200 300 300 600 900 1000 400 0 Subcontract Units Clear all Check answer
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