Use the data from exercise #1 to consider another possibility: They could hire a set of workers at the beginning of the year and build inventory. They could then use the inventory (and some subcontracting, if necessary) to deal with the quarters where demand exceeds production. Using this method, the inventory will cost them $15 per quarter based on the inventory on hand at the end of the quarter.

Will this option be more or less attractive than the alternatives considered in exercise

#1?