Section B 1). (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 a- Quarter Sales forecasts (litres) Spring 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 Initial 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 Page 8 of 11 (e) 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? (9) Using the chase demand strategy and the information in Table 1.1, what is the cost of firing workers? [14 Marks]