We are making a quarterly plan for Q2 2023 (ie April, May and June). According to forecasting model we have made, we expect that 105 pcs of our product will be sold. in April, 126 pcs. in May and 158 pcs. in June. In this example we are going to work according to a chase strategy and there is no need to work with inventory in this example. Premises: We do not have any starting stock in April. We do not want closing stock in June. Our daily production capacity is up to 130 pcs. in a month. Our overtime production capacity is up to 15 pcs. in a month. Our production capacity with subcontractors is up to 30 pcs. in a month. Production costs in daily work are 3,000 ISK/piece/month. Overtime production costs are ISK 4,500/piece/month. Production costs in contracting is ISK 4,800/piece/month

a) Present the production and cost plan (aggregate planning) for April, May and June 2023 according to chase strategy.

b) Would it have been better to have closing stock after April to avoid overtime and contractor costs in May and June? Justify.