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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: january1 comma 200may2 comma 100february1 comma 500june2 comma 300march1 comma 600july1 comma 800april1 comma 800august1 comma 800her 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 $25 per unit per month. ignore any idle-time costs. the plan is called plan a. 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 comma 600 units per month. the cost of hiring additional workers is $50 per unit. the cost of laying off workers is $75 per unit. evaluate this plan. (enter all responses as whole numbers.)
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The president of hill enterprises, terri hill, projects the firm's aggregate demand requirements ove...
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