The following forecast constitutes the demand for relay switches. John Smith, the production planner, has assembled the following cost data and the quarterly demand forecast: John's job is to develop an aggregate plan. The three initial options he wants to evaluate ar Plan A: a strategy that hires and fires personnel to have monthly production meet the forecast. Plan B: a level strategy, producing the average forecast by regular time production each month. Plan C: a level strategy that produces 1,200 cases per quarter and meets the forecast demand with inventory and subcontracting. a. What is the cost of plan A ? b. What is the cost of plan B ? c. What is the cost of plan C? d. If you are John's boss, the VP for operations, which plan do you implement? \begin{tabular}{|l|} \hline Costs/Other Data \\ \hline Previous quarter's output =1300 cases \\ \hline Beginning inventory =350 cases \\ \hline Stock-out cost =$110 per case \\ \hline \begin{tabular}{l} Inventory holding cost =$30 per case \\ at the end of quarter \end{tabular} \\ \hline Hiring employees =$40 per case \\ \hline Terminating employees =$75 per case \\ \hline Subcontracting cost =$60 per case \\ \hline Unit cost on regular time =$30 per \\ case \end{tabular}