The president of Hill Enterprises projects the firms aggregate demand requirements over the next 8 months as follows:

Month	Demand
January	1400
February	1600
March	1800
April	1800
May	2200
June	2200
July	1800
August	1800

You start off with a labor force of 22 making $20/hr straight time and $30/hr overtime. The work month is considered as 160 hours. These workers can produce 73 units per person per month. The cost of hiring additional workers is $500 per person. The cost of laying off workers is $750 per person. Stockout cost of lost sales is $100 per unit. Inventory holding cost is $20 per unit per month. The operations manager is considering a new plan A, which begins in January with 200 units on hand. Plan A: Vary the workforce level to execute a strategy that produces the quantity demanded in the PRIOR month. The December demand and rate of production are both 1,600 units. [That means you will have 1,800 units available to sell in January] Note: the cost for hiring and for layoffs will be incurred in the month of the change. That means the hiring costs in going from 1,400 units in January to 1,600 units in February will be incurred in February. Evaluate this plan.