Describe Aggregate Planning.

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