Osprey Fabrication Has the Following Aggregate Demand Requirements and Other

Essay

Osprey Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.
$\begin{array}{|l|l|l|l|}\hline\text { Quarter } & \text { Demand } & \text { Previous quarter's output } & 1300 \text { units } \\\hline 1 & 1400 & \text { Beginning inventory } & 0 \text { units } \\\hline 2 & 1200 & \text { Stockout cost } & \$ 50 \text { per unit } \\\hline & & & \$ 10 \text { per unit at end of } \\3 & 1600 & \text { Enventory holding cost } & \text { guarter } \\\hline 4 & 1500 & \text { Hiring workers } & \$ 40 \text { per unit } \\\hline & & \text { Laving off workers } & \$ 80 \text { per unit } \\\hline & & \text { Subcontractingcost } & \$ 60 \text { per unit } \\\hline & & \text { Unit cost } & \$ 30 \text { per unit } \\\hline & &\text { Overtine } & \$ 15 \text { extra per unit }\\\hline\end{array}$ Which of the following production plans is better: Plan A-chase demand by hiring and layoffs; Plan B-pure level strategy, or Plan C-1350 level with the remainder by subcontracting?