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

question 30

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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