1. Using a level production strategy, calculate the ending inventory values by month in the chart below. Joshua has 500 units of inventory on hand to start the year, and he wants to end the year with about the same on hand. Starting values 1 2 3 4 5 5 6 7 8 9 101 1100 11 1050 12 Total 900 139501 950 1150 1200 1300 1350 1350 1300 1200 1100 2 marks) Month Demand Production Inventory 2. If inventory carrying cost is $2.00 per unit per month, assessed at the end of each month, what would the total costs be with this level strategy? Starting values 3 marks) Month 1 2 4 5 6 7 8 9 9 10 11 12 Total 3 1200 Demand 9501 11501 13001 1350 13500 1300 1200 11001 1100 1050 900 Production Inventory Inventory cost 3. Joshua starts with 15 workers on staff. Each worker can produce 50 units per month. It costs $600 to hire a single new worker. Show the total hiring costs, and inventory costs, using the same production strategy as in Question 2 above. Starting values 1 2 3 4 5 6 7 8 9 10 11 12 Total 950 11501 1200 1300 1350 1350 1300 1200 11001 1100 1050 900 4 marks Month Demand Production Inventory Inventory cost Number of workers New workers needed Hiring costs Grand Total Costs 4. Use the table below to illustrate a chase production plan. Joshua has 500 units on hand to start and he wants to end the year with about the same. Layoff costs are $600 per worker (cost of severance, paperwork, etc.). It costs Joshua $600 each time he wants to hire a new worker. 3 4 6 7 8 9 11 101 1100 12 Total 900 950 1150 1200 1300 1350 1350 1300 1200 1100 1050 Starting (5 marks) Month values Demand Production Inventory Inventory cost Number of workers New workers needed or layed off Hiring and layoff costs Grand Total Costs 5.Analyze the 2 plans. Comment about what plan you consider to be better. Why? (2 marks)