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

question 15

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 total cost of the plan (hiring cost,firing cost and inventory carrying cost) is

• A)$120,000
• B)$377,500
• C)$675,000
• D)$795,000

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Definitions:

Community

In ecology, a community is a group of interacting species living in the same area, sharing a common environment.

Small Numbers

A numerical quantity categorized as being less than some arbitrary value, often context-specific.

Keystone Species

A species that plays a critical role in maintaining the structure of an ecological community, affecting many other organisms in the ecosystem.

Local Environment

The immediate physical and biological surroundings of an organism, influencing its growth and development.