Question $5$

$($a$)$ Table $2$ shows the demand figures for a product over a six$-$month period. Copy the table into your answer book and complete assuming a Level production plan.

Table $2$:

$\backslash$table$[[,$Jul,Aug,Sep,Oct,Nov,Dec$],[$Demand $($Units$),600,700,2400,1900,1700,800],[\backslash$table$[[$Cumulative$],[$Demand $($Units$)]],,,,,,],[\backslash$table$[[$Production per$],[$Period$]],,,,,,],[\backslash$table$[[$Cumulative$],[$Production$]],,,,,,],[\backslash$table$[[$Cumulative$],[$Demand minus$],[$Cumulative$],[$Production$]],,,,,,],[\backslash$table$[[$Ending$],[$Inventory$]],,,,,,],[$Back Orders,,,,,,$]]$

$($b$)$ Comment on your results and explain whether at this stage, you consider a Level plan is a suitable approach for this particular business. Your comment should include reference to a calculated 'fill rate'.

$($c$)$ Using Table $2$ again, this time complete for a Chase production plan.

Question $5$ continues on the next page.

$5$

Question $5$ continued...

$($d$)$ Explain whether a Level or Chase plan is more suitable for the demand pattern experienced by this particular business, which incidentally relies on highly skilled workers in the production process. Assume a starting workforce of $7$ and that fractional workers are permissible.

You should support your answer with numerical data derived from Table $3.$ In comparing the costs, state any other assumptions made.

Table $3$:

$\backslash$table$[[\backslash$table$[[$Units produced per worker$],[$per period$]],200$