A pizza company has a demand forecast for the next 12 months that is shown in the table below. The current workforce of 100 staff can produce 1000 cases of pizzas per month.

(a) Prepare a production plan that keeps the output level. How much warehouse space would the company need for this plan?

(b) Prepare a ‘chase demand’ plan. What implications would this have for staffing levels, assuming that the maximum amount of overtime would result in production levels only 10 per cent greater than those achieved in normal working hours?

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Pizza demand forecast Month Demand (cases per month) January February 600 800 March 1000 April 1500 May 2000 June 1700 July 1200 August 1100 September 900 October 2500 November 3200 December 900