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

question 3

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 level production strategy is used then the inventory at the end of quarter 3 is

• A) 0.
• B) 5,000.
• C) 10,000.
• D) 17,500.

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Definitions:

External Costs

Costs incurred as a result of an economic activity that affects third parties who did not choose to incur that cost.

Free Enterprise

An economic system where private businesses operate in competition, largely free of state control, with the prices of goods and services determined by the open market.

Capital

Financial assets or the financial value of assets, such as buildings, machinery, and equipment, used to produce goods and services.

Brazilian Factory Worker

An individual employed in the manufacturing sector in Brazil, often dealing with the challenges of labor conditions and economic factors.