Cost sources

Hiring cost

Layoff cost

Inventory carrying cost

Additional information

Need for labor per tonne produced per month

Safety stock in chase demand operating plan $($desirable level$)$

Safety stock in level operating plan $($desirable level$)$

Employees at the end of December $($history$)$

Inventory level at the end of December $($history$)$

Product value $($inventory$)$ per ton

FORECAST

TASKS

a$)$ Calculate the chase sales operations plan taking into account the above given information.

b$)$ Calculate the level operations plan taking into account the above given information.

c$)$ Make your own optimized plan $($Mixed Operating Plan$).$

c$)$ Compare the total costs of the three plans $($table$).$