Using the demand forecasts for six months and various cost information, calculate the costs of the following two aggregate plan alternatives. Assume that the beginning inventory in January, lo = 1,000 units. Calculate average level of inventory in a month as an average of inventory at the beginning and at the end of the month. Also, there are Wo = 80 workers at the beginning of January. Assume that all workers produce irrespective the demand fluctuations, i.e., output level is constant. Based on the total relevant cost criterion, which plan would you recommend to management? List the advantages and disadvantages of both strategies focusing on factors other than costs. Maintain constant workforce level. Use overtime and inventory, when necessary, to meet demand. Other capacity options are not allowed. Hire and fire workers, as needed. Other capacity options are not allowed. Month Demand Forecast (units) January 1,600 February 3,000 March 3,200 April 3,800 May 2,200 June 2,200 Item Cost Materials cost ($/unit) 15 Inventory holding cost ($/unit/month) Hiring and training cost ($/worker) Layoff cost ($/worker) Labor hours required (hours/unit) Regular time cost ($/hour) Overtime cost ($/hour) Regular time hours available (hours/worker/month) Overtime hours available (hours/worker/month) 2 300 500 6 10 13 160 40