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	820	1,020	710	720	1,270	1,080	940	1,140	500	350	750	900

Current inventory is 110 units. Current capacity is 800 units per month. The average salary of production workers is $1,550 per month. Material costs $110/unit. Each production worker accounts for 20 units per month. Overtime is paid at time and a half. Any increase or decrease in the production rate costs $35/unit for tooling, setup, and line changes. This does not apply, however, to overtime. Inventory-holding costs are $30 per unit per month. Lost sales are valued at $70 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	820
February	1,020
March	710
April	720
May	1,270
June	1,080
July	940
August	1,140
September	500
October	350
November	750
December	900
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 800 units per month.

The correct graph is

Chase demand production plan:

					Cumulative
			Cumulative		Product	Ending	Lost
Month	Demand		Demand	Production	Availability	Inventory	Sales
January	820
February	1,020
March	710
April	720
May	1,270
June	1,080
July	940
August	1,140
September	500
October	350
November	750
December	900
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 -

The total cost for level strategy is -Select-higherlowerItem 141 than the total cost for chase strategy.

For the level strategy, compare the normal production rate of 800 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	820
February	1,020
March	710
April	720
May	1,270
June	1,080
July	940
August	1,140
September	500
October	350
November	750
December	900
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

The total cost for level strategy with the average demand is -Select-lessmoreItem than the one using the normal production capacity.