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Consider the quarterly demand of 3500, 2600, 5500, 4400, for quarters 1,2,3,4, respectively. Let the production standard be 250 items/quarter. Let the carrying cost be
Consider the quarterly demand of 3500, 2600, 5500, 4400, for quarters 1,2,3,4, respectively. Let the production standard be 250 items/quarter. Let the carrying cost be $5/item/quarter.
If the beginning annual inventory is 500 but the ending annual inventory objective is 620,
then what is the total annual carrying cost for the aggregate planning strategies listed?
| Select One Answer | Aggregate Planning Strategy | Total Annual Carrying Cost |
A | Level Capacity | 25500 | |
B | Chase Demand | 11200 | |
| C | Level Capacity | 6375 |
| D | Chase Demand | 11500 |
| E | None of the above |
|
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