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

Question 7

Multiple Choice

The following information relates to a company's aggregate production planning activities: The following information relates to a company's aggregate production planning activities: Beginning Workforce = 35 workers Production per Employee = 1,250 units per quarter Hiring Cost = $500 per worker Firing Cost = $1,000 per worker Inventory Carrying Cost = $20 per unit per quarter If a level production strategy is used then the required quarterly output is A) 75,000. B) 87,350. C) 93,750. D) 125,000. Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter
If a level production strategy is used then the required quarterly output is


A) 75,000.
B) 87,350.
C) 93,750.
D) 125,000.

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