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

question 20

Multiple Choice

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

Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a chase demand strategy is used the total hiring and firing costs for the production plan is

• A)$67,500
• B)$135,000
• C)$202,500
• D)$337,500

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Definitions:

Mutually Beneficial Objectives

Goals or intentions that provide advantages or positive outcomes for all parties involved in a particular situation or agreement.

Policies

Formal guidelines or rules set by an organization to regulate and guide decisions and actions in various scenarios.

Sustainable Procurement

The practice of acquiring goods and services in a way that achieves value for money on a whole-life basis in terms of generating benefits not only to the organization but also to society and the economy, while minimizing damage to the environment.

Renewable Energy

Energy from sources that are naturally replenishing but flow-limited, like wind, solar, and hydroelectric power.