questions 7: Based on the level strategy (under the goal of minimizing the total cost), what is the total backorder cost for your plan above?

Answer questions 6-7 based on the following information. Demand forecasts are 40 for the first month, 30 for the second month, and 20 for the third month. Backorder is allowed. Overtime and subcontracting are NOT allowed. The production cost is $5/unit for regular production. Inventory cost (based on average inventory) is $1/unit/month and backorder cost is $10/unit/month. The beginning inventory for the first period is zero. The ending inventory and backlog for the last period should be zero. Question 6 1 pts One can use inventory and regular production to fulfill the demand. Based on level strategy (under the goal of minimizing the total cost), what should be the amount of regular production in month 1? O 30 20 None of the answers is correct 40