The Aggregate Production Plan The Beerstore splits the forecast they develop for their gift packs over the next 4 quarters. They estimate their demand for the year at 6000. The following table contains the fraction of demand by quarter. Apply the forecast to these percentages. Fraction of Quarter Demand 1 1/6 2 4/15 3. 7/30 1/3 The cost of carrying inventory is calculated at $5.00 per unit per period. Jody has been told they cannot afford stockouts and there is no backordering. At the APP level no work can be subcontracted and overtime work by employees is not allowed. However, the company will allow extra inventory to carry over from quarter to quarter and year to year. The Beerstore has 5 workers on staff now and each worker can produce on average 100 samplers per quarter. The labor force is fairly liquid and workers can be readily hired or laid off. Hiring costs are $500 per worker and layoff costs are $700 per worker. The workforce at the end of the 4 quarter will be retained. Her boss suggested they just follow the demand, a chase strategy, through the quarters to minimize un-needed inventory. However, the company HR department always complains about hiring and firing costs so they have suggested a pure level strategy. Jody believes that there is a better "hybrid" strategy she could develop that is lower cost than either of the other two plans. Jody needs to develop an aggregate production plana (APP) for the data & finds a plan that minimizes costs but complies with all company policies. Help Jody out.