The Following Information Relates to a Company's Aggregate Production Planning

question 8

Multiple Choice

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used the number of units to produce each quarter is

• A)42,500.
• B)85,000.
• C)62,500.
• D)37,500.

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Definitions:

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