A manufacturing company must choose between three aggregate production plans to meet demand that fluctuates over a six-month period. Plan I varies the workforce size, Plan II keeps the workforce constant and uses overtime and idle time, and Plan III keeps the workforce constant and allows inventory and stockouts. The costs of each plan are compared. Plan I costs $24,500, Plan II costs $36,600, and Plan III costs $9,600. Plan III, which keeps the workforce constant and allows for inventory and stockouts, is identified as the preferred plan due to having the lowest cost.