January February March Forecasted Demand 1,100 950 1,350 Regular Capacity 1,000 1,000 1,000 Workforce level Overtime Inventory in Holding Backorders Inventory holding ($10 unit) Back Order Cost ($20 unit) Total Cost Employing a Level Strategy where overtime cannot exceed 10 of regular capacity what...

January February March Forecasted Demand 1,100 950 1,350 Regular Capacity 1,000 1,000 1,000 Workforce level Overtime Inventory

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Question:

	January	February	March
Forecasted Demand	1,100	950	1,350
Regular Capacity	1,000	1,000	1,000
Workforce level
Overtime

Inventory in Holding
Backorders

Inventory holding ($10/unit)
Back Order Cost ($20/unit)
Total Cost

Employing a Level Strategy where overtime cannot exceed 10% of regular capacity what would the minimum possible backorder be at the end of March assuming you could only use the regular workforce and overtime.

a. 200

b. 400

c. 100

d. 50