Quantitative techniques for logistics and transport. kindly help?

1. A. Explain the effects of the levels of planning on stock.

B. I) What is the value of capacity planning.

     II) Analyze the following statement and calculate the best alternative that the owners need to take. Also motivate why you think that it is the best alternative

Hazlemere Holdings have forecasted the long-term demand for an item at 1,000 units a week. Current facilities have only enough capacity to supply 800 units a week, but Hazlemere can introduce overtime, with fixed costs of £1,000 a week and variable cost of £10 a unit. Alternatively, they can use a sub-contractor who supplies the item for £18 a unit. Present facilities might also be extended, and then each unit could be made for £13. Unfortunately, the extension will take a year to install. What advice would you give to Hazlemere?

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