Problem 13.12 Question Help 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: More Info 5 Click the icon to view the demand forecast. e 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. Quarter 1 2 3 4 Forecast 1,900 1,100 1,600 800 a) Which strategy is the lowest-cost plan? Try hiring and layoffs (to meet the forecast) as necessary (enter your responses as whole numbers). Print Done x More Info Hiring and Layoff Plan Hire Production (Units) 1,300 Forecast Layoff (Units) Quarter 1 1,900 Costs/Other Data Previous quarter's output = 1,300 cases Beginning inventory = 0 cases Stockout cost of backorders = $140 per case Inventory holding cost = $40 per case at end of quarter Hiring employees = $40 per case Terminating employees = $80 per case Subcontracting cost = $65 per case Unit cost on regular time = $25 per case Overtime cost = $10 extra per case Capacity on regular time = 1,900 cases per quarter Clear All Check