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Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1500 units 1 1300

Eagle Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.

Quarter Demand Previous quarter's output 1500 units
1 1300 Beginning inventory 200 units
2 1400 Stock-out cost $50 per unit
3 1500 Inventory holding cost $10 per unit at end of quarter
4 1300 Hiring workers $4 per unit
Laying off workers $8 per unit
Unit cost $30 per unit
Overtime $10 extra per unit

What is the cost of the following plans:

a. Plan Achase demand by hiring and layoffs.

b. Plan Bproduce at a constant rate of 1200 and obtain the remainder from overtime.

c. What plan would you choose?

please also explain why the ending inventory for plan B is 100?

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