Question: B. Shopco prefers to avoid backorders. As an alternative, Shopco would like to try using a Chase Method. Their current staffing levels have them able

 B. Shopco prefers to avoid backorders. As an alternative, Shopco would

B. Shopco prefers to avoid backorders. As an alternative, Shopco would like to try using a Chase Method. Their current staffing levels have them able to produce 1,200 units per month using regular labour. They can work overtime 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 $350 each. *Beginning inventory is 200 units. . Backorder costs are \$60 per unit per month. Inventory holding costs are \$40 per unit per month B. Shopco prefers to avoid backorders. As an alternative, Shopco would like to try using a Chase Method. Their current staffing levels have them able to produce 1,200 units per month using regular labour. They can work overtime 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 $350 each. *Beginning inventory is 200 units. . Backorder costs are \$60 per unit per month. Inventory holding costs are \$40 per unit per month

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