A company wants to develop a production plan for the next five months to minimize the total cost. Assume that
the beginning inventory is 50 units and the ending inventory should be 0. The (aggregate) demand forecast for
the next five months are provided in Table 1.
1.1. Use chase strategy to calculate production requirements for each period. (1 Point)
1.2. Use level strategy to calculate production requirements for each period. (1 Point)
Table 1. The (aggregate) demand forecast
Month
Demand Forecast
Jan
100
Feb
120
Mar
90
Apr
120
May
140