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Assume you have been assigned the task of identifying a chase strategy aggregate production plan for the coming year. You have been informed that beginning

Assume you have been assigned the task of identifying a chase strategy aggregate production plan for the coming year. You have been informed that beginning inventory is 500 units, your plan should provide an ending inventory for the year equal to 200 units, and you have been provided the following forecasts of aggregate demand. Knowing that the typical objective of chase plans is to avoid carrying inventory, what should be the planned rate of production for the first quarter?
Qtr. Forecast
16,000
25,500
35,000
46,500
Multiple Choice
6,250 units
5,500 units
6,000 units
5,750 units

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