1 Suppose that Mondo no longer must meet demands on time. For each quarter that demand for...

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1 Suppose that Mondo no longer must meet demands on time. For each quarter that demand for a motorcycle is unmet, a penalty or shortage cost of $110 per motorcycle short is assessed. Thus, demand can now be backlogged. All demands must be met, however, by the end of quarter 4.

Modify the formulation of the Mondo problem to allow for backlogged demand. (Hint: Unmet demand corresponds to it 0. Thus, it is now urs, and we must substitute it = it -it. Now it will be the amount of demand that is unmet at the end of quarter t.)

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