The​ S&OP team at Kansas​ Furniture, has received estimates of demand requirements as shown in the table. Assuming​ one-time stockout costs for lost sales of ​$125 per​ unit, inventory carrying costs of ​$20 per unit per​ month, and zero beginning and ending​ inventory, evaluate these two plans on an incremental cost​ basis: Plan B: Vary the workforce to produce the prior month’s demand. The fim produced 1,300 units in June. The cost of hiring additional workers is $30 per unit produced. The cost of layoffs is $60 per unit cut back Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change (i.e., going from production of 1,300 in July to 1000 in August requires a layoff (and related costs) of 300 units in August) Hire Units Layoff nits Ending Inventor 300 Stockouts nits Month Demand Production 1 July 2 August 3 Septembe 1400 4 October 5 November 6 December 1000 1300 1000 1200 1400 1800 1800 1200 1800 1800 1800

The​ S&OP team at Kansas​ Furniture, has received estimates of demand requirements as shown in the table. Assuming​ one-time stockout costs for lost sales of ​$125 per​ unit, inventory carrying costs of ​$20 per unit per​ month, and zero beginning and ending​ inventory, evaluate these two plans on an incremental cost​ basis:

Plan B: Vary the workforce to produce the prior month’s demand. The fim produced 1,300 units in June. The cost of hiring additional workers is $30 per unit produced.