GLOBAL SUPPLY CHAIN MANAGEMENT

At the end of December, you are asked to create a production plan for next year, based on the following table. And, there is 180 beginning inventory and regular production capacity is 400 units and production cost is $10 per unit. Every change on regular production will be charged $50. Overtime costs $10 extra and is limited to 150 units per month. There is a cost of $5 per month to hold a unit in inventory. Table 1 Month Forecast Regular Overtime Ending Production Production Inventory 350 0 180 December January February March April May June July August September October November December 250 300 500 350 380 400 390 370 420 450 570 600 a) Create a level production plan for January through December, state the ending inventory, regular and overtime production of each month, as table 1. And, determine the cost in January b) Create a chase production plan for January through December, state the ending inventory, regular and overtime production of each month, as table 1. And, determine the cost in January