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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

 JanuaryFebruaryMarch
Forecasted Demand1,1009501,350
Regular Capacity1,0001,0001,000
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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