Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast:

Quarter Forecast

$11,600$

$21,100$

$31,600$

$4900$

COSTS$/$OTHER DATA

Previous quarter$$s output $=1,500$ cases

Beginning inventory $=0$ cases

Stockout cost $=$ $$140$ per case

Inventory holding cost $=$ $$30$ per case at end of quarter

Hiring employees $=$ $$30$ per case

Terminating employees $=$ $$60$ per case

Subcontracting cost $=$ $$50$ per case

Unit cost on regular time $=$ $$40$ per case

Overtime cost $=$ $$20$ extra per case

Capacity on regular time $=1,800$ cases per quarter

John$$s job is to develop an aggregate plan. The three initial options he wants to evaluate are:

$$ Plan A: a strategy that hires and fires personnel as necessary to meet the forecast.

$$ Plan B: a level strategy that produces $1,200$ cases per quarter and meets the forecast demand with inventory and subcontracting.

$$ Plan C: Keep a stable workforce by maintaining a constant production rate equal to the average requirements and allow varying inventory levels.

Which strategy is the lowest$-$cost plan?