Jones Corporation Is Preparing an Aggregate Production Plan for Washers

question 24

Multiple Choice

Jones Corporation is preparing an aggregate production plan for washers for the next four quarters. The company's expected quarterly demand is given in the following chart. The company will have 1,000 washers in inventory at the beginning of the year and wishes to maintain at least that number at the end of each quarter. Following is other critical data: Production cost per unit = $250
Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory)
Hiring cost per worker = $1,000
Firing cost per worker = $2,000
Beginning number of workers = 10
Each worker can produce 100 units per quarter.Any worker on the staff at the end of the year will not be fired at that time. If Jones prefers a level plan, what will be the regular production rate per quarter?

• A)5,000 units
• B)4,000 units
• C)6,000 units
• D)Regular production will vary each month.

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Definitions:

Raven's Progressive Matrices

A nonverbal assessment tool designed to measure abstract reasoning abilities, similar to the Progressive Matrices Test but specifically referring to the version developed by John C. Raven.

Wechsler Intelligence Tests

A set of standardized tests designed to measure human intelligence in various dimensions, developed by David Wechsler.

WAIS-III

The Wechsler Adult Intelligence Scale-Third Edition, a tool used for assessing the intelligence and cognitive ability of adults.

WISC-IV

The Wechsler Intelligence Scale for Children-Fourth Edition (WISC-IV) is a cognitive ability assessment tool used to measure intelligence in children.