Question: B . ENGINEWORKS prefers to avoid backorders. As an alternative, they would like to try using a chase Strategy. Their current staffing levels have them

B. ENGINEWORKS prefers to avoid backorders. As an alternative, they would like to try using a chase Strategy. Their current staffing levels have them able to produce 1,250 units per month using regular labour. They can work overtime only one Saturday per month to produce an extra 50 units per day. They can subcontract up to 200 units per month. Overtime units are $325 each. Subcontracted units are $375 each. *Beginning inventory is 100 units. Backorder costs are $70 per unit per month. Inventory holding costs are $45 per unit per month. Regular labour is $225 per unit.

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