ABC Manufacturing has the following Aggregate Plan demand requirements and other data for the next four quarters. Quarter Demand Production from the previous quarter 1,500 units 1 1,300 Beginning inventory 200 units 2 1,400 Stock out cost $50 per unit 3 1,500 Inventory holding cost $10 per unit at the end of the quarter 4 1,300 Hiring workers $4 per unit Dismissing workers $8 per unit Unit cost $30 per unit Overtime $10 extra per unit.

Using the aggregate planning Excel sheet, answer the following:  

Plan A - Pursue demand by hiring and firing. What is the total cost of the plan? 

Plan B: Mixed strategy that produces at a constant rate of 1200 and earns the rest overtime. What is the cost of this plan? 

c. Based on cost, which plan should you choose?