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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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