Based on the following information, which of the following aggregates plans is more economical?

Based on the following information, ¿which of the following aggregates plans is more economical?Plan 1: Keep a workforce equal to the smallest month requirement, supplementing with overtime requirements.Plan 2: Implement a “Chase strategy”.                                Jan          Feb          Mar          Apr         May          JunDemand Forecast 1950        1650         1700        1850       1550        1850Working days            21            19             21            20           21            22

Safety Stock=10% of the Demand ForecastCosts:Materials $35.00/unitInventory holding cost $1.75 unit/monthMarginal cost of stockout: $6.00Hiring Costs: $350.00/employeeLayoff Costs: $650.00/employeeRequired hours per unit: 1.25/hoursStraight-line cost (first eight hours):  $15.00/hourOvertime cost:  $35.00/hourInitial Inventory: 500 Units

Plan 1: Keep a workforce equal to the smallest month requirement, supplementing with overtimerequirements.It is the month of May.JanDemand Forecast 1950Working days21 Feb165019 Mar170021…