Wiedmer Corporation Is Preparing an Aggregate Production Plan for Widgets

question 13

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.LEVEL PLAN What is the total cost of the level plan?

• A)$250,000
• B)$260,700
• C)$252,700
• D)$258,000

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Definitions:

Conformity

Behaving in a way that meets a specified standard, in coordination with a group.

Stage of Exhaustion

The phase in stress response where the body and mind are overwhelmed by stressors, leading to reduced function and possible burnout.

General Adaptation Syndrome

A three-stage response (alarm, resistance, exhaustion) that the body goes through when under stress, as proposed by Hans Selye.

Alarm Stage

The initial reaction of the body's stress response system, involving activation of the sympathetic nervous system to prepare to face or flee from a threat.