What is the difference between a chase production plan and a level production plan, with respect to the amount of inventory carried and the fluctuation in output quantity over time? How do the production plans generated by an \(L P\) model relate to these two types of plans?

Answer: The main differences between chase and level production plans are in inventory levels and output fluctuations. Chase production plans keep inventory levels low by adjusting production to match demand fluctuations, resulting in higher output fluctuations. Level production plans maintain constant production rates regardless of demand variability, leading to higher inventory levels but minimal output fluctuations. Linear programming models can generate production plans that balance the trade-offs between these two extremes by considering factors such as production costs, inventory carrying costs, and workforce constraints. The resulting optimal plan may resemble a chase or level production plan depending on the specific requirements and constraints of the problem.