a 3. The VP of Marketing is not all that happy with the large volume of back orders in any of your plans developed thus far. She asks that you develop a plan which requires no back orders at any time during the year. The VP of Marfacturing says that he will insist that any such plan specify level output cach quarter. The V.P. of Finance states that you no longer need to have a Qur. IV ending inventory of zero but it should be as low as possible. A Use the original demand data, beginning inventory, etc. from #1 above. Develop a plan which will meet the requirements of all three VP.'s. (Hint: Examine the graphs you prepared for question 1-B. What slope of the output line would be needed to eliminate backlogs, ie the cumulative output line cannot plot below the amulative demand arve at any time during the year? B. What will the ending inventory for Qtr. IV be? C. Compare this plan 3-A to your plan 1-A. What types of costs increased as a result of the effort to eliminate back orders? Was it worth as measured by TAC? Information: Demnand Forecasts Quarter Lawn Mowers Snow Blowers E- 10,000 15,000 16,000 3,000 9,000 7,000 19,000 10,000 Quarter I BI: Mowers 600 Blowers 400 Output and Costs Regular Time = $ 5.00 per unit Overtime - $ 7.50 per unit Subcontract = $10.00 per unit Part Time - $12,00 per unit Inventory = $ 1.00 per unit per quarter based on avg inventory during cach quarter Back onders - $ 8.00 per unit per period (based on back orders at end of period) Hiring = $200.00 per employee (Full-Time or Part-Time) Firing + $500,00 per employee (10 cost if Part-Time) Production Rates: Regular = 500 units per Full-Time employee per quarter (of either unit) Overtime - 200 units per Full-Time employee per quarter of either unit) Part Time* = 400 units per Part-Time employee per quarter (of either unit) Initial work force size: 44 Full-Time employee (beginning of Qur. 1)