Question
The following information relates to a company's aggregate production planning activities: Quarter Demand Forecast 1 75,000 2 100,000 3 75,000 4 125,000 Beginning Workforce =
The following information relates to a company's aggregate production planning activities:
Quarter | Demand Forecast |
1 | 75,000 |
2 | 100,000 |
3 | 75,000 |
4 | 125,000 |
Beginning Workforce = 35 workers Production per Employee = 1,250 units per quarter Hiring Cost = $500 per worker Firing Cost = $1,000 per worker Inventory Carrying Cost = $20 per unit per quarter If a chase demand strategy is used then the number of workers hired at the start of quarter 2 is
10
20
35
80
If a chase demand strategy is used then the total firing cost for the plan is
$10,000
$15,000
$20,000
$25,000
If a level production strategy is used then the cost of the level production plan (inventory costs plus hiring and firing costs) is
$20,000
$645,000
$1,250,000
$1,270,000
If a level production strategy is used then the inventory at the end of quarter 3 is
18,750
12,500
25,650
31,250
If a level production strategy is used then the number of workers required for the plan is
35
75
100
125
If a level production strategy is used then the required quarterly output is
75,000
87,350
93,750
125,000
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