Question: You are developing an aggregate plan for a toolbox maker which sells to professional mechanics. The relevant cost and demand data are shown below: Plan

You are developing an aggregate plan for a toolbox maker which sells to professional mechanics. The relevant cost and demand data are shown below: Plan A: Try a level strategy where the company produces to the average demand (of JulyDecember) by allowing capacity increases (hiring) and decreases(firing) to occur. What is the total cost of this plan? What is the total holding (inventory) cost for this plan? 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? What is the total holding (inventory) cost for this plan? Which plan should the toolbox maker choose

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