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

question 40

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:

Biological Magnification

The increased concentration of toxic chemicals, such as PCBs, heavy metals, and certain pesticides, in the tissues of organisms at higher trophic levels in food webs.

Bioconcentration

The accumulation of a substance in the tissues of living organisms at higher concentrations than in the surrounding environment.

Pesticide Treadmill

A situation where farmers must continuously use more and different chemicals to control pests that have developed resistance to pesticides.

Net Primary Productivity

The rate at which all the plants in an ecosystem produce net useful chemical energy; essentially, it is the amount of energy that is available to the primary consumers in an ecosystem.