The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows:2,1002,200JanuaryFebruaryMarchApril56Her 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 Demand0DecemberJanuary12 February3March4 AprilMayJune7Plan 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 $75 per unit. Subcontractingcapacity is limited to 800 units per month. Evaluate this plan by computing the costs for January through Augustin 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)81,5001,7001,6001,700JulyAugustMayJuneJulyAugust1,5001,7001,6001,7002,1002,2001,9001,4001,9001,400Production1,4001,4001,4001,4001,4001,4001,4001,400EndingInventory200SubcontractUnits

Cost is the amount that is incurred by the company on producing goods and services by using raw…

Answered: The president of Hill Enterprises,…

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

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Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.1: L.l.bean: Open 24/7, Click Or Brick

Problem 3VC

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FI The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January May 2,100 February June 2,200 July 1,800 August 1,800 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 $125 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. The plan is called plan A. Calculator Ask my instructor 2 Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the prior month. The December demand and rate of production are both 1,600 units per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $80 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,200 in February incurs a cost of layoff…
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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 1,700 June 2,100 March 1,600 July 1,700 April 1,900 August 1,500 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 $60 per unit. Inventory holding cost is $20 per unit per month. Ignore any idle-time costs. Evaluate the following plans D and E. Plan D: Keep the current workforce stable at producing 1,600 units per month. In addition to the regular production, another 20% of the normal production units can be produced in overtime at an additional cost of $50 per unit. A warehouse now constrains the maximum allowable inventory on hand to 600 units or less. Note: Do not produce in overtime if production or inventory are adequate to cover demand.…
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