A maker of high$-$volume tapes projects demand $($in units$)$ for the upcoming year to be as

follows.

Jan $1000$

Feb $1000$

Mar $1000$

Apr $2000$

May $2400$

June $2500$

July $3200$

$3$

Aug $2000$

Sep $1000$

Oct $900$

Nov $800$

Dec $800$

The plant runs $160$ hours per month and produces at an average rate of $10$ tapes per hour.

Unit profit per tape sold is N$50$ and the estimated cost to hold a tape in inventory for one

month is N$5.$ There is no inventory at the start of the year. Overtime can be used at a cost of

N$300$ per hour.

a$.$ Determine the inventory$-$holding and overtime cost of a Chase production strategy

$($i$.$e$.$ producing the amount demanded in each month$)$

b$.$ Do same for a level production strategy $($i$.$e$.$ producing the same amount each month