QUESTION 3 a) b) c) Month January February March April Forecast 120 135 140 120 ANSWER! May 125 -------- June 125 July 140 August 135 Develop a Level Output Plan and identify the total short units in each period and overall in production cycle Develop Chase Output Plan(s) to address the shortage identified in the Level Output Plan. Recommend the most cost-effective plan Regular Output Overtime Output Inventory holding cost Backorder cost Hiring Cost Capacity Units per Month 130 Unlimited $ per Unit 500 750 50 250 $ per Worker 3000 13 Regular Workers

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