An operation manager of a company needs to develop an aggregate production plan for the next six months that will meet demand during this period while minimizing costs. The manager gathered the following data: Forecast demand for the product: Month Jan Feb Forecast of demand (units) 900 700 Working days 22 20 Safety stocks (% of demand) 10% 10% Mar Apr May 500 450 400 24 20 22 5% 10% 5% June 700 24 5% Inventory carrying cost per month. Stock-out cost (Shortage cost) Labor hours required Hiring cost Firing cost (layoff cost) Straight line cost Beginning inventory level Hours per employee per day Beginning work force Marginal cost of subcontracting 1.5 per unit per month $4.5 per unit per month 10 hrs/unit 100 per employee 120 per employee S12 per hour 50 units 9 hours 40 S20/unit Apply the following strategies and suggest the most appropriate strategy to be applied. A. B. Chase Strategy: Produce exactly to meet demand; vary workforce Level Strategy: Constant workforce; vary inventory and allow shortages only. PLANA: Exact Production : Vary Workforce JAN FEB MAR APR MAY JUN Total Demand forecast Beginning Inventory Safety Stock (SS) Production Required (demand forecast - Big. Inve Production Hrs Required Working days per month Hrs per month per worker Workers required New workers req. Hiring cost Workers laid off Laid off cost Straight line cost TOTAL COST PLAN B: Constant Workforce; Vary Inventory and Stockout Description JAN FEB MAR APR MAY JUN Total Beginning Inventory Working days per month Prod. Hr. available Actual production Demand forecast Safety stock (SS) Total demand+ SS-big. inv Inventory cumulative inventory Shortage cost Inventory cost Straight line cost. TOTAL COST Sec Pages: 5 0 6 Words O of 610 PLANB SUMMARY OF ALL COSTS FOR EACH PLAN COSTS PLAN A Hiring cost Layoff cost Excess Inventory cost Shortage cost Straight line cost TOTAL Comment: [Write your comm mment]