Problem: The president of Hill Enterprises, Terri Hill, projects the firms aggregate demand requirements over the next 8 months as follows:
Jan1,400 May2,200
Feb1,600 June2,200
Mar1,800 July1,800
Apr1,800 Aug1,400
Plan A: Vary the workforce level to execute a chase strategy by producing the quantity demanded in the prior month. The December demand rates of production crew both 1,600 units per month. The cost of hiring additional workers is 5,000 per 100units.The cost of laying off workers is 5,000per100units. The cost of laying off workers is 7,500 per 100 units. Evaluate this plan.