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

question 33

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 chase demand strategy is used,then the number of workers hired at the start of quarter 2 is

• A)0
• B)50
• C)100
• D)200

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Definitions:

Full-Employment

A scenario where an economy utilizes all accessible labor resources in the most optimized manner.

Potential Output

Represents the highest level of real Gross Domestic Product (GDP) that can be sustained over the long term without increasing the rate of inflation.

Sustainable Output

The level of production that can be maintained over the long term without depleting natural resources or harming the environment.

Unemployment Rate

The fraction of the employment sector that is not employed and is earnestly looking for work.