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

question 64

Multiple Choice

The following information relates to a company's aggregate production planning activities:

Beginning Workforce = 50 workers
Production per Employee = 250 units per quarter
Hiring Cost = $1000 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $15 per unit per quarter
If a level production strategy is used then the inventory at the end of quarter 3 is

• A)0
• B)5,000
• C)10,000
• D)17,500

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