Problem $13-8($Static$)$

Appliances Incorporated is preparing an aggregate production plan for washers for the next four months. The company$$s expected monthly demand is given below in the chart. The company will have $500$ washers in inventory at the beginning of the month and desires to maintain at least that number at the end of each month. Assume hiring and layoff$/$firing$,$ if necessary, occur at the beginning of the month. Below are other critical data:

Production cost per unit $=$ $$300$

Inventory carrying cost per month per unit $=$ $$50($based on ending month inventory$)$

Hiring cost per worker $=$ $$1,000$

Firing cost per worker $=$ $$2,000$

Beginning number of workers $=10$

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Each worker can produce $100$ units per month.

Required:

a$1.$ Given the planning information, develop a level plan.

a$2.$ Given the planning information, develop a chase plan.

b$.$ Determine the cost of the two plans.