Wiedmer Corporation Is Preparing an Aggregate Production Plan for Widgets

question 15

Multiple Choice

Wiedmer Corporation is preparing an aggregate production plan for widgets for the next four months.The company's expected monthly demand is given in the following chart.The company will have 50 widgets in inventory at the beginning of the first month and wishes to maintain at least that number at the end of each month.Following is other critical data: Production cost per unit = $50
Inventory carrying cost per month per unit = $10 (based on ending month inventory) Hiring cost per worker = $300
Firing cost per worker = $200 Beginning number of workers = 16
Each worker can produce = 50 units per month.CHASE PLAN
What is the total cost of hiring and firing the workers in a chase plan which uses only hiring and firing?

• A)0
• B)$800
• C)$5,000
• D)$6,400

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Definitions:

Wrongful Dismissal

The termination of an employee's contract of employment in violation of the law or the terms of the contract itself, often without proper notice or just cause.

Performance Management System

A framework used by organizations to monitor, evaluate, and improve the performance of employees.

Rating Errors

Mistakes made in assessing performance or quality, often due to biases or misinformation.

Performance Management Process

A systematic approach to improving employee performance through setting objectives, assessments, feedback, and continuous development.