Question: Part 1 -- APP Trial and Error Quarter Demand 1 1,100 2 4,000 3 4,600 4 2,300 Regular Prod. Capacity = 3,000 units/qtr Overtime Prod.

Part 1 -- APP Trial and Error Quarter Demand 1

Part 1 -- APP Trial and Error Quarter Demand 1 1,100 2 4,000 3 4,600 4 2,300 Regular Prod. Capacity = 3,000 units/qtr Overtime Prod. Capacity = 500 units/qtr Subcontracting Capacity = 4,000 units/qtr Production rate/worker = 50 units/qtr Starting workforce = 60 Beginning Inventory = 0 Regular Prod. Cost = $10/unit Overtime Prod. Cost = $15/unit Subcontract Prod. Cost = $20/unit Inventory Cost = $5/unit/qtr Backorder Cost = $7/unit/qtr Firing Cost = $2000/worker Hiring Cost = $1500/worker The company has decided to switch to a Trial and Error production plan combining Level Production with Backorders strategies. How many total units will be on Backorder during the 3rd quarter

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