Africa Studio/Shutterstock John's job is to develop an aggregate plan. The three initial options he wants to evaluate are: Plan A: a strategy that hires and fires personnel as necessary to meet the forecast Plan B: a level strategy. Plan C: a level strategy that produces 1,200 cases per quar- ter and meets the forecast demand with inventory and sub- contracting a) Which strategy is the lowest-cost plan? b) If you are John's boss, the VP for operations, which plan do you implement and why? PX ... 13.12 Southeast Soda Pop, Inc., has a new fruit drink for which it has high hopes. John Mittenthal, the production planner, has assembled the following cost data and demand forecast: QUARTER FORECAST 1 1,800 2 1,100 3 1,600 4 900 COSTS/OTHER DATA Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost - $150 per case Inventory holding 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