The Westerbeck Company manufactures several models of automatic washers and dryers. The projected requirements over the next year for their washers are shown in the table below:

Month J F M A M J J A S O N D

Requirement $7009308609501,3501,2101,0201,2605503507201,200$

Current inventory is $150$ units. Current capacity is $1,100$ units per month. The average salary of production workers is $$1,400$ per month. Material costs $$150/$unit$.$ Each production worker accounts for $45$ units per month. Overtime is paid at time and a half. Any increase or decrease in the production rate costs $$65/$unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory$-$holding costs are $$23$ per unit per month. Lost sales are valued at $$85$ per unit. Compare the costs of level and chase demand production plans using the Agg Plan $$ Level and Agg Plan $$ Chase Excel templates. Round all your answers for cost values to the nearest cent and all other answers to the nearest whole number. Do not round intermediate calculations. If your answer is zero, enter $"0".$

Level production plan:

Cumulative

Cumulative Product Ending Lost

Month Demand Demand Production Availability Inventory Sales

January $700$

February $930$

March $860$

April $950$

May $1,350$

June $1,210$

July $1,020$

August $1,260$

September $550$

October $350$

November $720$

December $1,200$

Average

Maximum

Total Production Total Inventory Total Lost Sales Total Overtime Total Undertime Total Rate Change

Cost Cost Cost Cost Cost Cost

$

$

$

$

$

$

Total cost: $

Choose the correct graph illustrating the aggregate production plan with the level production of $1,100$ units per month.

The correct graph is

$-$Select$-$

$.$

A$.$

B$.$

C$.$

D$.$

Chase demand production plan:

Cumulative

Cumulative Product Ending Lost

Month Demand Demand Production Availability Inventory Sales

January $700$

February $930$

March $860$

April $950$

May $1,350$

June $1,210$

July $1,020$

August $1,260$

September $550$

October $350$

November $720$

December $1,200$

Average

Maximum

Total Production Total Inventory Total Lost Sales Total Overtime Total Undertime Total Rate Change

Cost Cost Cost Cost Cost Cost

$

$

$

$

$

$

Total cost: $

Choose the correct graph illustrating chase demand production plan.

The correct graph is

$-$Select$-$

$.$

A$.$

B$.$

C$.$

D$.$

The total cost for level strategy is

$-$Select$-$

than the total cost for chase strategy.

For the level strategy, compare the normal production rate of $1,100$ units per month with the average monthly demand rounded to a whole number. Round all your answers for cost values to the nearest cent and all other answers to the nearest whole number. Do not round intermediate calculations. If your answer is zero, enter $"0".$

Level production plan with the average monthly demand rounded to a whole number:

Cumulative

Cumulative Product Ending Lost

Month Demand Demand Production Availability Inventory Sales

January $700$

February $930$

March $860$

April $950$

May $1,350$

June $1,210$

July $1,020$

August $1,260$

September $550$

October $350$

November $720$

December $1,200$

Average

Maximum

Total Production Total Inventory Total Lost Sales Total Overtime Total Undertime Total Rate Change

Cost Cost Cost Cost Cost Cost

$

$

$

$

$

$

Total cost: $

Choose the correct graph illustrating the aggregate production plan with the level production equal to the average monthly demand.

The correct graph is

$-$Select$-$

$.$

A$.$

B$.$

C$.$

D$.$