The Allswell Manufacturing company estimates that it will have an inventory of 1,000 units at the beginning of January. It is mid-December and the current production is 8,000 units per month. Projected monthly demand (in thousands) for the coming year is as follows:

Month               Jan     Feb      Mar      Apr      May     Jun      Jul       Aug      Sep      Oct      Nov     Dec

Demand           7           8        9          12        13        15        10        10        12        13        12        11

a. Plot this data and analyze it.

b. Using level production, what amount production should be planned for each month?

c. If inventory costs $1.00/unit/month, what is the total cost of inventory?