Eagle Fabrication has the following aggregate demand requirements for next 4quarters. Other production and cost data are also shown below. Examine thedata and determine which of the following production plans is better from anoperations managerâ€™s standpoint. Justify your answer with appropriatecalculations.(i) Plan A â€“ meet demand by hiring and layoffs; or(ii) Plan B â€“ produce at a constant rate of 1200 units per quarter and obtainthe remainder from overtime;Quarter Demand1 13002 14003 15004 1300Previous quarter output 1500 unitsBeginning inventory 200 unitsStockout cost $50 per unitInventory holding cost $10 per unit at end of quarterHiring workers $4 per unitLaying off workers $8 per unitUnit cost $30 per unitOvertime $10 extra per unitPlease show the answer step by step.
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