Please help with this problem! LEVEL and CHASE PLAN $(10$ pts$)$

Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that

travel to various locations in Philadelphia, Monday$-$Friday. The lunch trucks deliver pre$-$packaged healthy sandwich and

salad alternatives, fresh fruit and pre$-$packaged low$-$fat desserts and canned beverages. Together, the partners have to

make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient

and profitable.

Current Situation:

Wes and Steve have begun to sell their bottled hot sauce to area markets. They have prepared a forecast of expected

demand for the bottles for the next $6$ periods as shown below. Given this information and the data re: capacities and

costs, complete the $2$ required aggregate plans on the next pages and answer the Qs shown.

Maximum regular production $=220$ units$/$period

Maximum overtime $=40$ units$/$period

Maximum Subcontracting $=500$

Beginning inventory $=0$

Regular time cost $=$$$8$

Overtime cost $=$$$12$

Sub$-$contract cost $=$$$16$

Inventory holding costs are $$1/$average unit$/$period

Backorders cost of $$\frac{20}{?}$ unit$/$period

Background:

Wes and Steve are partners in a lunch truck company that operates a central kitchen and operates lunch trucks that

travel to various locations in Philadelphia, Monday$-$Friday. The lunch trucks deliver pre$-$packaged healthy sandwich and

salad alternatives, fresh fruit and pre$-$packaged low$-$fat desserts and canned beverages. Together, the partners have to

make many decisions about how to structure the operational aspects of the business so that it is cost effective, efficient

and profitable.

Current Situation:

Wes and Steve have begun to sell their bottled hot sauce to area markets. They have prepared a forecast of expected

demand for the bottles for the next $6$ periods as shown below. Given this information and the data re: capacities and

costs, complete the $2$ required aggregate plans $($LEVEL and CHASE$)$ on the next pages and answer the Qs shown.

Maximum regular production $=220$ units$/$period

Maximum overtime $=40$ units$/$period

Maximum Subcontracting $=500$

Beginning inventory $=0$

Regular time cost $=$$$8$

Overtime cost $=$$$12$

Sub$-$contract cost $=$$$16$

Inventory holding costs are $$1/$average unit$/$period

Backorders cost of $$20/$ unit$/$period

Questions

Which plan is better from a cost standpoint? $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1$ pt$)$

$2.$ Which plan is better for employees $($work$/$life balance$)?$ Why?$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1$ pt$)$

$3.$ For both plans, how is quality potentially jeopardized? $(2$ pt$)$

Level: $\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$ Chase$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$4.$ If demand was to increase over time, what SPECIFIC, STRATEGIC action must Wes and Steve undertake to ensure

profitability, cost effectiveness and quality for their business? $($FYI $-$ there is only one correct answer to this Q$.)$

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_(1$ pts$)$