You are asked to make a sales and operation plan for the next year. The demand forecasts for the next four quarters are 2000, 1600, 2800, and 2400 units, respectively. The production rate is 100 units per quarter per employee. There is no initial inventory or safety stock requirement.

Using a level strategy, what is the inventory/backorder at the end of quarter 2?

Multiple Choice

• 200

• 400

• 800

• 0