Consider the Following Information What Are Total Back Order Costs

question 86

Short Answer

Consider the following information: $$\begin{array} { l l l } \text { Period } & \text { Forecast } \\\hline 1 & 200 & \\2 & 200 & \\3 & 300 & \\4 & 400 & \\5 & 500 & \\6 & 200 & \\\text { Regular Time: } & \$ 20 \text { per unit ( } 280 \text { units per period maximum) } \\\text { Overtime: } & \$ 30 \text { per unit (40 units per period maximum) } \\\text { Subcontracting: } & \text { None available } \\\text { Beginning Inventory: } & \text { None } \\\text { Carrying Cost: } & \$ 1 \text { per unit per period } \\\text { Backorder Cost: } & \$ 5 \text { per unit per period }\end{array}$$ What are total back order costs?