Below are the aggregate demand requirements and other data for the upcoming four quarters. Quarter Demand Previous quarter's output 1550 units 1 1200 Beginning inventory 150 units 2 1400 Stockout cost $50 per unit 3 1650 Inventory holding cost $10 per unit at end of quarter 4 1300 Hiring workers $8 per unit Laying off workers $12 per unit Unit cost $40 per unit Overtime $15 extra per unit Which of the following production plans is better:

a. Plan Achase demand by hiring and layoffs to exactly meet monthly demand via regular time production. What is the total cost? [ Select ]

b. Plan BMixed Strategy - produce at a constant rate of 1250 and obtain the remainder from overtime. What is the total cost? [ Select ]

c. What plan should be implemented? [ Select ]