Question: Consider the following Cost, Capacity and Demand data Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Backorder cost per unit:

Consider the following Cost, Capacity and Demand data

Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Backorder cost per unit: $20 Inventory holding cost per unit: $10 Labor standard per unit: 0.6 hours Regular time available/period: 30 hours/employee Overtime available/period: 30 hours/employee

Beginning workforce: 15 employees Beginning inventory: 0 units Demand data Period 1: 793 units Period 2: 844 units Period 3: 833 units Period 4: 820 units

If the firm uses a mixed strategy where only backorders are used beside regular labor, the backorder cost for the planning horizon will be

A. $0
B. $960
C. $3600
D. $5800
E. $1980

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