Wiedmer Corporation Is Preparing an Aggregate Production Plan for Widgets

question 29

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 inventory carrying cost of a chase plan accomplished through hiring and firing?

• A)0
• B)$200
• C)$1,000
• D)$2,000

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