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 A$$chase demand by hiring and layoffs to exactly meet monthly demand via regular time production. What is the total cost?

$[$ Select $]$

Note: Produce in$-$house taking into account the inventory level.

b$.$ Plan B$$Mixed 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 $]$