Question: What will be the total cost? Inventory carrying cost = 3 S.R/unit - month Backorder cost = 4 S.R/unit- month Beginning inventory = 1500 unit at a cost 0 5 4 3 8000 11000 4000 6000 1500 1000 2 1 Period 1200 5000 Demand 0 6000 6000 6000 6000 Regular Time (Production Capacity/period 1000 units 15 S.R 2000 1000 2000 1500 Overtime 500 1000 1000 500 Subcontracting Subcontractin Overtime 2000 units 10 S.R Regular Time 6000 units 5 S.R Production Capacity/Period Production Cost/ Unit