On Dec. $22$ the V$.$P$.$ Finance informs you that the cost of capital will be extremely high next year. As a consequence he asks you to develop a radically different type of aggrogate plan based on a "Chase" strategy. Ending inventory is to be zero at the end of each quarter. The V$.$P$.$ Mamufacturing says be realized this type of strategy will require him to abandon his beloved "level" strategy and for you to vary the total output rate from one quarter to another. When necessary to do so$,$ the following options and priorities should be used in developing the roquired output each period. Finally, the personnel Manager informs you that, due to end of year retirements, only $36($not $44)$ full$-$time employees will be on the payroll as of Jan. $2.$ Furthermore, due to an expected shortage of labor in the area, she doubts that any additional fill$-$time comployees could be hired huring the next year. A$.$ Using the original dernand and beginning inventory information, develop a "chase" plan following the guidelines noted above. Summarize your plan on a worksheet. B$.$ What hiring$/$firing actions will the Persomel Department need to take each quarter? C$.$ What was the logic of the V$.$P$.\text{'}$s priority options?

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