15 Materials Holding costs - $1,200 $400 100 7.25 Marginal cost of backorder - $550 Beginning Workers Beginning inventory Productive hours/worker/day- Units per worker per month Paid hours/worker/day Working days in month 30 8 Hiring and training cost- $500 Layoff costs $800 Straight time labor cost/hr. $28 20 Chase Strategy Jan Feb Mar Apr May June 600 730 910 640 1,200 10 O 0 20 10 600 730 890 1.190 630 15 20 25 30 40 5 5 10 o Demand 550 Beginning Inv. 100 Net 450 Requirements Beginning 15 Workers Hired 0 Fired 10 Req. Workers 15 Production 450 Ending 0 Inventory Material Cost Backorder Cost uno 0 0 O 19 20 25 30 21 40 1.200 600 750 900 630 0 20 10 10 Labor Cost What is the total backorder cost? 15 Materials Holding costs - $1,200 $400 100 7.25 Marginal cost of backorder - $550 Beginning Workers Beginning inventory Productive hours/worker/day- Units per worker per month Paid hours/worker/day Working days in month 30 8 Hiring and training cost- $500 Layoff costs $800 Straight time labor cost/hr. $28 20 Chase Strategy Jan Feb Mar Apr May June 600 730 910 640 1,200 10 O 0 20 10 600 730 890 1.190 630 15 20 25 30 40 5 5 10 o Demand 550 Beginning Inv. 100 Net 450 Requirements Beginning 15 Workers Hired 0 Fired 10 Req. Workers 15 Production 450 Ending 0 Inventory Material Cost Backorder Cost uno 0 0 O 19 20 25 30 21 40 1.200 600 750 900 630 0 20 10 10 Labor Cost What is the total backorder cost