A manager is attempting to put together an aggregate plan for the coming nine months. She has obtained a forecast of expected demand for the planning horizon. The plan must deal with highly seasonal demand; demand is relatively high in periods 3 and 4 and again in period 8, as can be seen from the following forecasts:

1	2	3	4	5	6	7	8	9	10
190	230	260	280	210	170	160	260	180	1940

The department now has 20 full-time employees, each of whom can produce 10 units of output per period at a cost of $6 per unit. Inventory carrying cost is $5 per unit per period, and backlog cost is $10 per unit per period.

What is the total inventory cost?

A- 320

B- 270

C- 310

D- 350

E- 300

What is the total backorder cost?

A- 2500

b-2400

c- 2300

d- 2000

e- 2100