Assume you have the responsibility of coming up with a production plan. Next, you are presented with a demand forecast for the next $6$ months; the forecast has been produced by the sales department:

Month

$1$

$2$

$3$

$4$

$5$

$6$

Demand forecast

$600$

$750$

$1000$

$850$

$750$

$700$

The production manager reports $50$ units currently on hand; additionally she expects to end up with $25$ units at the end of the planning horizon. You know that a worker can produce $25$ units per month and that currently there are $20$ workers available.

$1.$ Use the information above to develop a level production plan. What are the costs $($inventory and human resources$)$ associated with this production plan? Are there other costs $($financial or not fianacial$)$ associated with the plan?

$2.$ Use the information above to develop a chase production plan. What are the costs $($inventory and human resources$)$ associated with this production plan? Are there other costs $($financial or not financial$)$ associated with the plan?

$3.$ Use the information above to develop a hybrid production plan. In this plan you should be able to achieve the same objective with a smaller cost compared to the previous two plans.

$4.$ What are your recommendations? What are the advantages and disadvantages of the solution you're suggesting?