Table 1 shows the demand figures for a product over a six-month period. Complete the table in your answer book assuming a Level production plan.

Table 1:

	Jan	Feb	Mar	Apr	May	June
Demand (Units)	800	800	3600	1800	1800	800
Cumulative Demand (Units)
Production per Period
Cumulative Production
Cumulative Demand minus Cumulative Production
Ending Inventory
Back Orders

Comment on your results and explain whether you consider a Level plan is a suitable approach for this particular business. Your comment should include reference to the fill rate.

Using Table 1 again, this time complete for a Chase production plan.

Explain whether a Level or Chase plan is more suitable for the demand pattern experienced by this business. You should support your answer with numerical data derived from Table 2. In comparing the costs, state any assumptions made. Assume a starting workforce of 8 and that fractional workers are permissible.

Table 2:

Units produced per worker per period
		200
Hiring cost per worker		400
Firing cost per worker		600
Inventory Holding Cost per unit per period		5
Shortage Cost per unit per period		7.50