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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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