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

Question 62

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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 inventory at the end of quarter 3 is A)  18,750 units. B)  12,500 units. C)  25,650 units. D)  31,250 units. 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 inventory at the end of quarter 3 is


A) 18,750 units.
B) 12,500 units.
C) 25,650 units.
D) 31,250 units.

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