A production manager needs to develop a production schedule to meet the following demand: Productions costs are as follows: (a) regular time: $3 per unit. (b) over-time: $5 per unit. (c) subcontract: $7 per unit. (d) Inventory carrying cost =$2 per unit per period (e) Back-order costs =$5 per unit per period. You have to meet all the demand. You start with no inventory at the beginning of the first period, and end with no inventory at the end of the sixth period. Schedule A: Suppose the manager has adopted a policy of 'level production' ( i.e., constant production rate for all periods). Assume no over-time or subcontracting is allowed. (1) The production rate per period is: (a) 600 (b) 700 (c) 800 (d) 900 (e) None of the above (2) The average inventory for the second period is: (a) 100 (b) 200 (c) 300 (d) 400 (e) none of the above (3) The average inventory for the third period is: (a) 100 (b) 200 (c) 300 (d) 400 (e) none of the above (4) The average inventory for the fourth period is: (a) 100 (b) 200 (c) 300 (d) 400 (e) none of the above (5) The backlog for the fifth period is: (a) 50 (b) 100 (c) 150 (d) 200 (e) none of the above (6) The total cost of meeting the demand is: (a) $17,300 (b) $18,500 (c) $17,800 (d) $17,600 (e) none of the above Schedule B: Suppose some workers have retired, and the regular production rate can be only 700 units per period. Further, no subeontracting is allowed. However, it is possible to schedule production on an over-time basis. (Hint: You normally schedule over-time production during peak demand.)