Appliances Incorporated is preparing an aggregate production plan for washers for the next four months. The company's expected monthly demand is given below in the chart. The company will have 500 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Below are other critical data:

Beginning inventory 500 Desired minimum ending inventory at end of each month 500 Production cost per unit $390 Inventory carrying cost per month per unit (based on ending month inventory) $40 Hiring cost per worker $1,300 Firing cost per worker $2,600 Beginning number of workers 16 Each worker can produce (units per month) 100

Required Note: Use cells A2 to B11 from the given information to complete this question.

a. Given the planning information, develop a level production plan and a chase production plan.

Level Plan

Month Demand Regular Production Ending Inventory Workers Required Hire Fire/Lay Off

1 2,800

2 4,000

3 4,500

4 3,900

Total 15,200

Total cost

Cost Chase Plan

Month Demand Regular Production Ending Inventory Workers Required Hire Fire/Lay Off

1 2,800

2 4,000

3 4,500

4 3,900

Total 15,200

Total cost Cost