*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:

Quarter	Forecast
1	1800
2	1100
3	1600
4	900

Costs/Other Data

Previous quarters output = 1300 cases

Beginning inventory = 350 cases

Stock-out cost = $110 per case

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

Hiring employees = $40 per case

Terminating employees = $75 per case

Subcontracting cost = $60 per case

Unit cost on regular time = $30 per case

Overtime cost = $20 extra per case

Johns 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 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? [ Select ] ["$349,000", "$375,500", "$307,000", "$401,000", "$330,000"]

b. What is the cost of plan B? [ Select ] ["$198,500", "$196,000", "$201,000", "$187,435", "$237,000"]

c. What is the cost of plan C? [ Select ] ["$196,100", "$206,450", "$177,000", "$188,880", "$196,500"]

d. If you are Johns boss, the VP for operations, which plan do you implement? [ Select ] ["Plan A Vary the Workforce", "Plan B Level", "either B or C, based on having the same overall cost", "Plan C Mixed"]