Subcontract cost= $50/unit Holding = $10/month Stock-out cost =$ 50/unit Hiring cost = $40worker Layoffs cost= $80/worker Initial inventory =100

Subcontract cost= $50/unit

Holding =  $10/month

Stock-out cost =$ 50/unit

Hiring cost = $40worker

Layoffs cost= $80/worker

Initial inventory =100 units

Units last period =1400 units(December) 

Month   Demand Forecast

Jan          1200

Feb         1400

Mar        1600

Apr         1800

May        1800

June        2000

July         2000

Aug         1800

Given the data above, develop a level aggregate plan where production is 1400 units /month. Use inventory and subcontracting to develop the plan. Compute the cost of this plan.