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January February March Forecasted Demand 1,100 950 1,350 Regular Capacity 1,000 1,000 1,000 Workforce level Overtime Inventory in Holding Backorders Inventory holding ($10/unit) Back Order
January | February | March | |
Forecasted Demand | 1,100 | 950 | 1,350 |
Regular Capacity | 1,000 | 1,000 | 1,000 |
Workforce level | |||
Overtime | |||
Inventory in Holding | |||
Backorders | |||
Inventory holding ($10/unit) | |||
Back Order Cost ($20/unit) | |||
Total Cost |
Employing a Level Strategy where overtime cannot exceed 10% of regular capacity what would the minimum possible backorder be at the end of March assuming you could only use the regular workforce and overtime.
a. 200
b. 400
c. 100
d. 50
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