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Consider the quarterly demand of 3500, 2600, 5500, 4400, for quarters 1,2,3,4, respectively, with a beginning annual inventory of 500 and an ending annual inventory

Consider the quarterly demand of 3500, 2600, 5500, 4400, for quarters 1,2,3,4, respectively, with a beginning annual inventory of 500 and an ending annual inventory of 500. Let the production standard be 250 items/quarter. Let the carrying cost be $5/item/quarter.

For the aggregate planning strategies listed,

what are the correct quarterly hire and fire FTES for the quarters listed?

Select One

Answer

Aggregate Planning

Strategy

Quarter

Quarterly

Hire FTEs

Quarterly

Fire FTEs

A

Level Capacity

1

0

3.6

B

Chase Demand

2

0

0

C

Level Capacity

3

11.6

0

D

Chase Demand

4

0

4.4

E

None of the above

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