Daily Demand Month Expected | Production | Demand per Demand Days day January 500 22 23 February 600 18 34 March 600 21 29 April 700 2 4 May 700 22 32 June) 800 20 40 July 300 2 43, August 300 21 a ‘September 800 20 40 October: 700 2 32 November 600 20 30 December 600 18 34 Cost Informa n l@ Backorder (shortage) cost per ladder @ $10 per month ® Inventory carrying cost @ $3 per month @ Present work force- 700 ladders/ month @ Cost is $ 70 per ladder at 700/mo. @ Cost is $75 for each ladder OVER 700/mo. @ If less than 700 ladders/mo. Cost is $82 per ladderLenova Computer, Ltd ® Beginning inventory 9100 ott $$ Month | Demand Stockout cost 9 $50 per unit January 1000 Inventory Holding Cost @ $10 per unit based on count February 1200 at month's end Sub-contracting 1400 @ $40 extra per unit @ Maximum of 1500 extra units 1200 aati @ Overtime 1500 @ Maximum of 200 units per month 1300 9 $10 extra per unit Produce at 1200/month and subcontract to meet demand Plan 2- preduce st 1200 / month and use overtime to mest demand