You are developing an aggregate plan for a toolbox maker which sells to professional mechanics. The relevant cost and demand data are shown below: Holding cost $8/toolbox/month Month Demand Subcontract $80/toolbox July 400 Regular time $45/toolbox August 500 OT Regular time cost plus additional $20 per toolbox September 500 Capacity increase $50/unit October 700 Capacity decrease $90/unit November 800 Backlog cost $10/toolbox/month December 700 June capacity and demand 500 toolboxes Beginning inventory 0 toolboxes

Plan A: Try a level strategy where the company produces to the average demand (of July-December) by allowing capacity increases (hiring) and decreases(firing) to occur. What is the total cost of this plan? [ Select ] What is the total holding (inventory) cost for this plan? [ Select ]

Plan B: In this plan, the toolbox maker would to the minimum demand of the 6 month planning period, then use subcontracting each month to meet that month's demand, ensuring that there is no backlog. What is the total cost of this plan? [ Select ] What is the total holding (inventory) cost for this plan? [ Select ] Which plan should the toolbox maker choose? [ Select ]