Costs/Other Data Previous quarter's output = 1,200 cases Beginning inventory = 0 cases Stockout cost of backorders = $160 per case Inventory holding cost = $40 per case at end of quarter Hiring employees = $40 per case Terminating employees = $80 per case Subcontracting cost = $70 per case Unit cost on regular time = $25 per case Overtime cost = $20 extra per case Capacity on regular time = 1,900 cases per quarter 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: Click the icon to view the demand forecast. Click the icon to view the cost data. . 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 1,000 cases per quarter and meets the forecast demand with inventory and subcontracting a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Quarter Forecast Hiring and Layoff Plan Hire Production (Units) 1,200 Layoff (Units) 1 1,900 1,100 2 3 1,500 4 800 (enter your response as a whole The total cost, including normal time labor costs, for this hiring and layoffs plan is $ number), Construct a plan that holds employment steady (level strategy) by producing the average forecast for all four quarters (enter your responses as whole numbers). Quarter Forecast Level Plan Ending Hire Production Inventory Shortage (Units) 1,200 Layoff (Units) 1 1,900 1,100 2 3 1,500 4 800 The total cost, including normal time labor costs, for this level plan is $ (enter your response as a whole number). Construct the level plan that holds employment steady at 1.000 plus subcontracting (enter your responses as whole numbers). Quarter Forecast Production Level Plan Subcontract (Units) Ending Inventory Hire (Units) Layoff (Units) 1 1,900 1,100 1,200 1.000 1,000 2 3 1,500 1,000 1,000 4 800 The total cost, including normal time labor costs, for this level plan is $ (enter your response as a whole number). b) If you are John's boss, the VP for operations, which plan do you implement and why? O A. Plan B, as it is the highest cost and provides steady employment for the employees. O B. Plan C, as it is the lowest cost and provides steady employment for the employees. OC. Plan A, as it is the highest cost and provides steady employment for the employees. OD. Plan A, as it is the highest cost and provides unsteady employment for the employees. O E. Plan C, as it is the lowest cost and provides unsteady employment for the employees. F. Plan B, as it is the lowest cost and provides steady employment for the employees