X is a furniture company. Currently, there has 150 worker in the company who has to work 20 working days per month and 5 hours per day.

Beginning inventory = 5000 units Beginning workforce = 150 workers Production per employer = 1250 units per month Hiring cost = $200 per worker Firing cost = $300 per worker Inventory carrying cost = $2 per unit per month Subcontract cost = $3 per unit Overtime cost = $ 10 per unit Regular production cost = $6 per hour The company has to decide a suitable strategy for aggregate planning in production. Please fillfull the following tables with required strategies, find out the total cost and then suggest the best strategy to company between 3 options.

Option 1: Company use working overtime only for unmet demand

Option 2: Company use subcontract only for unmet demand

Option 3: Company use chase strategy for the aggregate planning

Question: Develop aggregate planning for three options. Which strategy is the best?

Month Demand 70000 1 2 3 100000 50000 150000 4 250000 5 6 100000 Month Demand 70000 1 2 3 100000 50000 150000 4 250000 5 6 100000