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

question 62

Multiple Choice

The following information relates to a company's aggregate production planning activities: 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 level production strategy is used then the inventory at the end of quarter 3 is

• A) 18,750 units.
• B) 12,500 units.
• C) 25,650 units.
• D) 31,250 units.

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