You need to develop an aggregate plan. Three initial options to evaluate are:

a. hire and fire personnel to meet forecast

b.level strategy

c. level strategy that produces 1200 cases per quarter and meet forecast demand with inventory and subcontracting

2.1. which strategy is the lowest cost plan?

2.2 if you are now the boss, the VP of operations. Which plan do you implement and why?

2. Southeast Pop Soda Inc developed a new product. The production manager compiled the following information with an initial demand forecast per quarter as follows (cases) Demand Forecast Quarter 1,800 100 1,600 900 Costs/Other data Previous quarter output 1,300 cases Beginning inventory 0 cases Stock out cost: 150 per case Inventory hold cost: 40 per case at end of quarter Hiring Employees: 40 per case Terminating Employees: $80 per case Subcontracting cost: 60 per case Unit cost on regular time: 30 per case Overtime cost: 15 extra per case Capacity on regular time: 1,800 cases per quarter