Appliances Incorporated is preparing an aggregate production plan for washers for the next four months. The companys expected monthly demand is given below in the chart. The company will have 500 washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff/firing, if necessary, occur at the beginning of the month. Below are other critical data:

Production cost per unit = $300

Inventory carrying cost per month per unit = $50 (based on ending month inventory)

Hiring cost per worker = $1,000

Firing cost per worker = $2,000

Beginning number of workers = 10

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Each worker can produce 100 units per month.

Required:

a1. Given the planning information, develop a level plan.

a2. Given the planning information, develop a chase plan.

b. Determine the cost of the two plans.