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

question 14

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 level production strategy is used the number of units to produce each quarter is

• A) 42,500
• B) 85,000
• C) 62,500
• D) 37,500

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