problem 13.12. please show all work

Capacity on regular time = 1.800 cases per quarter Previous quarter's output 1,300 cases Stockout cost $150 per case Inventory holding cost $40 per case at end of quarter uring employees $40 per case Terminating employees = $80 per case Subcontracting cost $60 per case Unit cost on regular time - $30 per case Overtime cost-$15 extra per case *** 13.12 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: QUARTER FORECAST 1.800 2 1.100 3 1,600 900 Beginning inventory = 0 cases COSTS OTHER DATA Africa Studio/Shutterstock 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. level strategy Plan C a level strategy that produces 1.200 cases per quar- ter and meets the forecast demand with inventory and sub- contracting. a) Which strategy is the lowest-cost plan? b) If you are John's boss, the VP for operations, which plan do you implement and why? PX