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Question 6. Consider the information. Quarterly Demand = 4200, 3200, 4600, 3400, for quarters 1,2,3,4, respectively. Production Standard = 250 items/quarter Unit Hiring Cost =

Question 6. Consider the information.

Quarterly Demand = 4200, 3200, 4600, 3400, for quarters 1,2,3,4, respectively.

Production Standard = 250 items/quarter

Unit Hiring Cost = $250/FTE

Unit Firing Cost = $350/FTE

Unit Carrying Cost = $4/item/quarter

With a beginning annual inventory of 500 and an ending annual inventory of 620, which set of values are correct for a Chase Demand aggregate planning strategy within Solution and Analysis Tables?

Answer A

Answer B

Answer C

Answer D

Quarter 1 Production

4230

4190

4200

None

of

the

above

Quarter 2 Ending Inventory

560

480

500

Quarter 3 Total Carrying Cost

2300

1900

2000

Quarter 4 FTE Quarterly Requirements

13.72

13.56

13.60

Total Annual Hiring Cost

2200

2200

2200

Total Annual Firing Cost

3080

3080

3080

Total Annual Carrying Cost

8960

7680

8000

Total Annual Cost

14240

12960

13280

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