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Deb Bishop Health and Beauty Products has developed a new shampoo, and you need to develop its aggregate schedule. The cost accounting department has supplied you the costs relevant to the aggregate plan, and the marketing department has provided a four-quarter forecast. All are shown as follows:QuarterForecast11,40021,20031,50041,300· Previous quarter output = 1,500 units· Beginning inventory = 0 units· Stock out cost = $50 per unit· Inventory holding cost = $10 per unit for every unit held at the end of the quarter· Hiring workers = $ 40 per unit· Layoff workers= $80 per unit· Unit cost = $30 per unit· Overtime = $ 15 extra per unit· Subcontracting = not availableYour job is to develop an aggregate plan for the next four quarters.a) First, try a chase plan by hiring and layoffs (to meet the forecast) as necessary.Then try a plan that holds employment steady.c) Which is the more economical plan for Deb Bishop Health and Beauty Products?
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