(a) As the production manager of a firm which sells canned food in a competition market, you are concerned with the overstocking and stock shortages, which can result in lost sales and increase costs. If your demand plans cannot be quickly adjusted, you increase your risk of running into stock outs and being unable to fulfill customer orders. The food item is a differentiated commodity from those available from other firms. Two trends you recently learned from economic forecasts are: (i) the overall market supply of food will decrease by 2% due to exit of foreign competitors; (ii) due a growing economy, the overall market demand for food will increase by 2%. Based on this information, explain your demand plan regarding whether to increase or decrease your production of food. What other factors would you consider to reach your production planning? [10 marks]