Question: Consider the following cost, Capacity and Demand data Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Beginning workforce: 15 employees

Consider the following cost, Capacity and Demand

Consider the following cost, Capacity and Demand data Regular time labor cost: $10 per hour Overtime labor cost: $15 per hour Beginning workforce: 15 employees Backorder cost per unit: $20 Beginning inventory: 0 units Inventory holding cost per unit: $10 Labor standard per unit: 0.6 hours Demand data Regular time available/period: 30 Period 1: 813 units hours/employee Period 2: 864 units Overtime available/period: 30 Period 3: 853 units hours/employee Period 4: 840 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. $1260 B. $3800 C. $7400 D. $2280 E. $0

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