1. Management of the Valdosta Corporation has determined the following aggregated demand schedule (in units): An employee can produce an average of 10 units per month. Each worker on the payroll costs $2000 in regular-time wages per month. Undertime is paid at the same rate as regular time. In accordance with the labor contract in force, Valdosta Corporation does not work overtime or use subcontracting. Valdosta can hire and train a new employee for $2000 and lay off one for $500. Inventory costs $32 per unit on hand at the end of each month. At present, 140 employees are on the payroll and anticipation inventory is zero. a. Prepare a production plan that only uses a level workforce and anticipation inventory as its supply options. Minimize the inventory left over at the end of the year. Layoffs, undertime, vacations, subcontracting, backorders, and stockouts are not options. The plan may call for a one-time adjustment of the workforce before month 1 begins. b. Prepare a production plan using a chase strategy, relying only on hiring and layoffs. c. Contrast these two plans on the basis of annual costs