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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,500 May 2,200 February

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The president of Hill Enterprises, Terri Hill, projects the firm's aggregate demand requirements over the next 8 months as follows: January 1,500 May 2,200 February 1,700 June 2,100 March 1,800 July 1,900 April 1,800 August 1,900 Her operations manager is considering a new plan, which begins in January with 200 units of inventory on hand. Stockout cost of lost sales is $125 per unit. Inventory holding cost is $25 per unit per month. Ignore any idle-time costs. The plan is called plan A. 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 per month. The cost of hiring additional workers is $50 per unit. The cost of laying off workers is $75 per unit. Evaluate this plan. (Enter all responses as whole numbers.) Note: Both hiring and layoff costs are incurred in the month of the change. For example, going from 1,600 in January to 1,500 in February incurs a cost of layoff for 100 units in February. Hire Layoff Ending Stockouts Period Month Demand Production (Units) (Units) Inventory (Units) 0 December 1,600 1,600 200 January 1,500 1,600 2 February 1,700 1,500 3 March 1,800 1,700 4 April 1,800 1,800 5 May 2,200 1,800 6 June 2,100 2,200 7 July 1,900 2,100 8 August 1,900 1,900

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