This is a question that Solver will be used to solve.

Alset Motor Inc. is determining its production schedule for the next four quarters. Demands for electric motorcycles are forecasted to be 400 in quarter 1; 700 in quarter 2; 500 in quarter 3; and 200 in quarter 4. Alset incurs four types of costs, as described below

I. It costs Alset $800 to manufacture each motorcycle II. At the end of each quarter, a holding cost of $100 per motorcycle left in inventory is incurred III. When production is increased from one quarter to the next, a cost is incurred, primarily for training employees. If the increase in production is X motorcycles, the cost is $700X IV. When production is decreased from one quarter to the next, a cost is incurred, primarily for severance pay and decreased morale. If the decrease in production is X motorcycles, the cost is $600X V. A quarters production can be used to meet demand for the current quarter (as well as future quarters). VI. All demands must be met on time During the quarter immediately preceding quarter 1, 500 motorcycles were produced. Assume that at the beginning of quarter 1, no motorcycles are in inventory. a) Formulate and solve a linear spreadsheet model to help this company solve its problem. b) Alset is about to finalize a contract for an extra sale of 1000 motorcycles during quarters 3 and 4. The sales manager is confident that she can convince the new client to (i) receive 1000 units in quarter 3 or (ii) receive 500 units in quarter 3 and quarter 4, respectively. As the assistant to the production manager which option would you recommend, and why? Furthermore, provide an explanation as to why one option is better than the other? (Note: you are asked for an exact justification of the new solution, e.g., using the Solver again in light of the new information, rather than just an intuitive solution.) c) Suppose that item (VI) in the above list is changed as All demand must be met by the end of quarter 4. Modify your model to handle backlogging at a cost of $150 per unit per quarter.