PROBLEM #1: A production manager needs to develop a production schedule to meet the following demand: Period 1 2 3 4 Demand 500 1300 1600 500 production costs are as follows: production cost during regular time: $4 per unit cost of subcontracting: $5 per unit Inventory carrying cost = $3 per unit per period Back-order costs = $8 per unit per period. Regular production rate: 900 units per period You can subcontract at the rate of 150 units per period only during the second and third periods. Develop a production schedule for this scenario and answer the following questions. Equation: Surplus/Shortage in any period = Quantity Produced + Quantity Subcontracted - Demand What is the average inventory for the first period? 200 QUESTION 12 What is the surplus or shortage in the second period? (Hint: Use the equation given above): Enter only the number without a minus sign, even if your answer is a negative number QUESTION 13 What is the inventory at the beginning of the second period? QUESTION 14 What is the average inventory for the second period? What is the surplus or shortage in the third period? (Hint: Use the equation given above): Enter only the number without a minus sign, even if your answer is a negative number QUESTION 16 What is the backlog for the third period? QUESTION 17 What is the total cost of the items subcontracted during periods 2 and 3 together