Leo$$s is considering three aggregate planning strategies:

$1.$ Use a level strategy with constant workforce of $5$ workers to meet average daily demand using only regular work hours of $8$ hours$/$day with $5$ work days$/$week$,$ and no overtime. Note that employee productivity is $20$ units$/$hour$.$ Total daily production for $5$ employees given $8$ hour work day $=20$ units$/$hour$/$employee $*5$ hours $*8$ hours$/$day $=800$ units$/$day$.$

$2.$ Constant workforce is set at $4$ workers. Production will chase forecasted demand using a contract manufacturer to produce monthly forecasted demand in excess of the regular production of the $4$ workers. No overtime allowed.

$3.$ The Operations Manager is concerned about the level of ending inventory in plan $1$ because of the perishable nature of the Leo's product line. Plan $3$ is similar to plan $1$ but restricts the amount of inventory carried to a following month to $1500$ units. Leo's will continue to pay the $5$ workers for a $40-$hour work week regardless of the level of production. Leo's will not use layoffs or reduced hours for the $5$ regular time workers. Contract manufacturing is available on an as$-$needed basis to meet the AP$.$