Problem 2. Given the following demand forecasts, costs, and constraints for a company. Quarter Demand 1 5,000 2 8,200 3 10,500 4 4,300 = I Regular production capacity = 7,000 units/quarter Overtime capacity=2,000 units/quarter Subcontracting capacity = 7,000 units/quarter Inventory capacity= 10,000 units/quarter Beginning inventory = 0 Regular production cost = $10 /unit Overtime production cost = $14 /unit Subcontract production cost = $18 /unit Inventory holding cost = $4 /unit/quarter Backorder cost = $5 /unit/quarter Assume backorders carry over to the next quarter, that is, you need to use this quarter's inventory to fulfill previous quarter's backorder. a. What is the cost if the company uses a Level Production Strategy with only Overtime and Subcontracting? Production Inventory Overtime Subcontract Quarter Demand 1 5000 2 8200 3 10500 4 4300 total cost b. What is the cost if the company uses a Level Production Strategy with only Backorders? Backorder can accumulate and carry over to next period. Production Inventory Backorder Quarter Demand 1 5000 2 8200 3 10500 4 4300 total cost c. What is the cost if the company uses a Chase Demand Strategy with only Subcontracting? (no need to consider hiring and/or firing) Production Subcontract Quarter Demand 1 5000 2 8200 3 10500 4. 4300 total cost