Need to develop aggregate schedule for widget maker. Costs and 4 quarter forecast are provided below.

Quarter Forecast
1 1400
2 1200
3 1500
4 1300

Costs

Prior quarter output 1500 units
starting inven 0 units
stockout cost for back
orders $50/unit
inven holding cost $10/unit for every unit held at end of quarter
hiring workers $40/unit
layoff workers $80/unit
unit cost $30/unit
overtime $15 extra per unit
subcontracting $ na

Questions

a. Try a chase plan by hiring and layoffs to meet forecast as necessary.
b. use a plan that holds employment steady
c. which is the more economical plan.