13.

Beginning Workers			100
Beginning inventory =			2000
Productive hours/worker/day =			6.75
Units per worker per month			600

Level Strategy	Jan	Feb	Mar	Apr	May	June
Demand	145,000	127,000	89,000	110,000	133,000	162,000
Beginning Inv.
Net Requirements
Beginning Workers
Hired
Fired
Req. Workers
Production
Ending Inventory

Using the level strategy, what is the ending inventory for June?

- 800

- 0

- 2,800

- -2,800

14.

Beginning Workers		15
Beginning inventory =		300
Productive hours/worker/day =		7.25
Units per worker per month		25
Paid hours/worker/day =		8
Working days in month		20

Materials =	$1,500
Holding costs =	$450
Marginal cost of backorder =	$600
Hiring and training cost =	$500
Layoff costs =	$800
Straight time labor cost/hr.	$25

Chase Strategy	Jan	Feb	Mar	Apr	May	June
Demand	500	640	600	910	1,050	500
Beginning Inv.	300	0	10	10	0	0
Net Requirements	200	640	590	900	1,050	500
Beginning Workers	15	8	26	24	36	42
Hired	0	18	0	12	6	0
Fired	7	0	2	0	0	22
Req. Workers	8	26	24	36	42	20
Production	200	650	600	900	1,050	500
Ending Inventory	0	10	10	0	0	0
Material Cost
Backorder Cost
Labor Cost

What is the total backorder cost?

- less than 0

- equal to 0

greater than 0