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

question 17

Multiple Choice

The following information relates to a company's aggregate production planning activities: Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a chase demand strategy is used then the number of workers fired at the start of quarter 3 is

• A) 0.
• B) 50.
• C) 60.
• D) 100.

---

Definitions:

Accounts Payable

Short-term liabilities of a company, representing amounts owed to suppliers or creditors for goods and services received but not yet paid for.

Long-Term Debt

Debt obligations that are due to be paid back over a period longer than one year, used for significant investments and capital improvements.

Accounts Payable Period

The average amount of time it takes for a business to pay off its suppliers and creditors.

Cost Of Goods Sold

The direct financial outlays for creating goods sold by a company, covering materials and labor.