1.Product E is a new product and manufactured by the Alpha company itself. This product was introduced to the market in July 2019 and the feedback of the market was very positive. Mary had provided the 2019 historical sale data of product E in the attached file. She wanted Jason to determine the optimal production plan for the first 4 weeks of 2020 for product E. Some information is given here:

2019 last week's output =2,800

Beginning inventory = 0

Inventory holding cost = $40 per unit per week

Hiring employees = $40 per unit

Terminating employee = $80 per unit

Subcontracting cost =$60 per unit

Unit cost on regular time = $30 per unit

Overtime cost = $15 extra per unit

Jason's job is to develop an aggregate plan. The three initial options he wants to evaluate are:

a. Plan A: a chase strategy that hires and fires personnel as necessary to meet the forecast.

b. Plan B: a level strategy.

c. Plan C: a level strategy that produces 2,800 units per week and meets the forecasted demand with inventory and subcontracting.

Which strategy Jason should choose to get the lowest expected cost? (30 points)

Week of 2019 Sales of Product E

1 to 26 N/A

27 1544

28 1597

29 1661

30 1703

31 1746

32 1802

33 1850

34 1902

35 1950

36 2003

37 2043

38 2097

39 2160

40 2202

41 2246

42 2295

43 2349

44 2397

45 2450

46 2499

47 2550

48 2603

49 2648

50 2691

51 2754

52 2808