The following information will be used for the next 9 problems (17-25). I strongly suggest using Excel to setup the aggregate plan associated with these questions.

A key hospital supplier, IVs Plus (IVP) located in Salina, KS sells IV tubing and stands to hospitals and clinics. Sales have picked up ever since they introduced their newest Squeaky Clean IV stand, which eliminates all oils and germs left behind by users. The demand over the next 12 months is shown in the table below. Use the demand forecasts and determine the lowest cost production plan.

Month	Demand Forecast	Month	Demand Forecast
January	145,000	July	167,042
February	173,007	August	194,254
March	168,200	September	212,713
April	184,329	October	178,312
May	187,037	November	132,400
June	150,073	December	199,023

Regular production cost	$27 per unit
Holding cost	$7 per unit per month based on ending inventory
Backorder cost	$14.00 per unit per month based on ending inventory
Beginning Inventory	75,000 units

Beginning workforce	9 employees
Regular production rate	16,000 units per employee per month
Hiring cost	$10,000 per worker
Firing cost	$11,500 per worker

Produce at a level rate using regular time production only. Backlogs are allowed in any month except December. Ending inventory is allowed in any month. Ending inventory for December should be as low as possible.

Question 17) How many units are produced for the year using regular time production?

Group of answer choices

Less than 1,800,000

Between 1,800,000 and 2,000,000

Between 2,000,001 and 2,200,000

More than 2,200,000

Question 18

After hiring or firing any workers in the first month, how many workers are required throughout the year following the level production strategy? Your answer should be a numerical whole number.

Question 19

What is the monthly production cost (price to make the number of units produced each month) following the level production strategy?

Group of answer choices

Less than $4,000,000

More than $4,000,000, but less than or equal to $4,500,000

More than $4,500,000, but less than or equal to $5,000,000

More than $5,000,000

Question 20

What are the total costs incurred for the year following the level production strategy?

Group of answer choices

Less than $63,000,000

More than $63,000,000, but less than or equal to $65,000,000

More than $65,000,000, but less than or equal to $67,000,000

More than $67,000,000

Question 21

For the next 4 questions follow the chase production strategy. Absorb variations in demand by changing the size of the workforce. When additional employees are hired or fired, they cannot be fractions of a person. You must round up to the next whole person. When you round up, all those employees work the full month which could result in some inventory that is carried to the next period. Ending inventory should be as low as possible each month.

Question 21) How many units are produced for the year using the chase production strategy?

Group of answer choices

Less than 1,800,000

Between 1,800,000 and 2,000,000

Between 2,000,001 and 2,200,000

More than 2,200,000

Question 22

What is the annual total cost of firing employees in this example following the chase production strategy?

Group of answer choices

Between $50,000 and $100,000

Between $100,001 and $150,000

Between $150,001 and $200,000

Greater than $200,001

Question 23

What are the total costs incurred for the year following the chase production strategy?

Group of answer choices

Less than $63,000,000

More than $63,000,000, but less than or equal to $65,000,000

More than $65,000,000, but less than or equal to $67,000,000

More than $67,000,000

Question 24

How many workers are required in September following the chase production strategy? Your answer should be a numerical whole number.

Question 25

Following the chase production strategy, in what month are no workers fired or hired? There were the correct amount of workers already employed at the end of the previous month.

Group of answer choices

January

February

March

April

May

June

July

August

September

October

November

December