13.3 ProblemThe president of Hill Enterprises, Terri Hill, projects the firms aggregate demand requirements over the next 8 months as follows:Jan1,400May2,200Feb1,600June2,200Mar1,800July1,800Apr1,800 Aug1,400Plan 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 100 units. The cost of laying off workers is $7,500 per 100 units. Evaluate this plan.
