Jones Inc. is preparing an aggregate production plan for next year. The company expects demand to be 2,000 units in quarter 1; 3,000 units in quarter 2; 5,000 units in quarter 3; and 4,000 units in quarter 4. The company will have 100 units in inventory at the beginning of the year and desires to maintain at least that number at the end of each quarter as safety stock. Assume hiring and layoff/firing, if necessary, occur at the beginning of the quarter. Other information: Regular production labor cost = $200 per unit Overtime production cost per unit = $300 Inventory carrying cost = $15/unit/quarter based on quarter-ending inventory Hiring cost = $7,000 per worker Firing/layoff cost = $7,500 per worker Beginning number of workers = 20 2 Click here for the Excel Data File Each worker can produce 100 units per quarter. a-1. Given the planning information, develop a level production plan and a chase production plan. (Leave no cells blank - be certain to enter "0" wherever required.) Level production plan Quarter Demand Regular Production Overtime/Subcontract Production Ending Inventory Workers Required Hire Fire layoff 1 2 2,000 3,000 5,000 3 4 4,000 14,000 Total 0 0 0 0 0 a-2. What is the total cost of a level plan? Total cost b-1. Given the planning information, develop a chase production plan utilizing hiring and firing. (Leave no cells blank - be certain to enter "O" wherever required.) Overtime/Subcontract Production Ending Inventory Chase Plan - Variable Workforce Regular Quarter Demand Production 1 2,000 2 3,000 Workers Required Hire Fire layoff 3 5,000 4 4,000 14,000 Total 0 0 0 b-2. What is the total cost of a chase plan utilizing hiring and firing? Total cost C-1. Suppose Jones' management is reluctant to constantly change the workforce by hiring and firing. The company decides to hire six additional workers at the beginning of the year. The company will build inventory in low-demand months and use it in high-demand months. In addition, if necessary, overtime will be used to meet demand requirements if there is not sufficient inventory available. (Leave no cells blank - be certain to enter "O" wherever required.) Quarter Demand Regular Production Overtime/Subcontract Production Ending Inventory Workers Required Hire Fire layoff 1 2 3 2,000 3,000 5,000 4,000 14,000 4 Total 0 0 0 0 0 C-2. What is the total cost of this plan? Total cost