(a) Using the information in Table 1.1 below, what is the average quarterly demand? ___________________________________ Table 1.1 A firm produces antifreeze solution litres. This product has a very seasonal demand pattern during the winter. Given the following costs and quarterly sales forecasts, answer the questions aQuarter g Sales forecasts (litres) Sprin 80,000 Summer 50,000 Autumn 120,000 Winter 150,000 Hiring costs for plant worker: M100.00 Firing cost for plant worker: M500.00 Inventory carrying cost per litre per quarter: M0.50 Production level plant per worker per quarter: 1000 litres Initia l work force:100 workers (b) Using level production strategy and the information in Table 1.1, what is the inventory level at the end of the spring quarter? _______________________ (c) Based on information in Table 1.1, what is the inventory holding cost for the year using the level production strategy? ____________________________ (d) Using the chase demand strategy and information in Table 1.1, what are the quarterly production quantities? Spring _______________________________________ Summer______________________________________ Autunm _______________________________________________ Winter _______________________________________

Using the chase demand strategy and information in Table 1.1, how many workers are needed in spring? _____________________________________ (f) What is the cost of hiring plant workers using the chase demand strategy and the information in Table 1.1? ______________________________________ (g) Using the chase demand strategy and the information in Table 1.1, what is the cost of firing workers? ________________________________________