Brad Rad, senior VP for BreaknmyHip., is looking at three alternative aggregate production plans for the next six-month period. Because of the seasonality of their business, demand varies by month with substantial month-to-month differences. The three alternatives he is considering are a "pure level plan," which keeps an absolutely constant workforce, a "pure chase plan" relying on hiring and layoffs, and a hybrid plan. He is most likely to find that the hybrid plan:

options:

	Has higher hiring/layoff cost than the chase plan and higher inventory carrying cost than the level plan.
	Has a total cost that falls between a pure level and a pure chase plan.
	Has higher inventory carrying cost than the level plan and lower hiring/layoff cost than the chase plan.
	Has lower inventory carrying cost than the chase plan and higher hiring/layoff cost than the level plan.
	None of these answers are correct