Problem 1 LG Appliances produces home appliances, such as dishwashers, refrigerators, ovens etc. In your role as Operations Manager for LG Appliances, you have just completed forecasting the following demand for its refrigerators for the next 12 months: Month Demand January 3,900 February 4,030 March 4,900 April 7,230 May 8,500 June 7,230 July 6,590 August 8,210 September 12,500 October 11,200 November 7,900 December 5,950 Total 88,140 A worker can produce an average 220 refrigerators/month. Workers earn $4,300/month, and they do not work overtime. LG Appliances spends $1,800 for each employee it hires (with training), and it costs $3500 to lay off a worker. Hires and lay-offs occur on the first day of each month. At the end of each month, if there is any inventory on hand, it costs $40 per unit to carry to the next period. If there are unsatisfied orders (backorders) at the end of the month, a penalty cost of $100 per backordered unit is incurred. All backorders must be fulfilled by the end of December. There is currently no inventory available in stock at the beginning of January, and 30 employees are working in the company. a) Prepare a chase aggregate plan assuming that no inventory can be carried from one month to the next month and that no backorders are allowed. Please display the workforce level on a monthly basis. Compute the total cost of the chase plan. b) Prepare a level aggregate plan that allows inventory holding from one month to the next, as well as backorders. Calculate the inventory level or backorders at the end of each month. Compute the total cost of the level plan. c) Based on the total costs you calculated in part (a) and part (b), which plan is better?