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Vodafone Corporation Is Preparing an Aggregate Production Plan for Its

Question 45

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Vodafone Corporation is preparing an aggregate production plan for its product for the next four months. The firm's expected monthly demand is given in the following table. The firm will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. The following is other critical data:
Production cost per unit = $125
Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory)
Hiring cost per associate = $50
Firing cost per associate = $100
Beginning number of associates = 25
Each associate can produce 25 units per month.
Vodafone Corporation is preparing an aggregate production plan for its product for the next four months. The firm's expected monthly demand is given in the following table. The firm will have 100 units in inventory at the beginning of the month and wishes to maintain at least 100 units at the end of each month. The following is other critical data: Production cost per unit = $125 Inventory carrying cost per quarter per unit = $10 (based on quarter-ending inventory)  Hiring cost per associate = $50 Firing cost per associate = $100 Beginning number of associates = 25 Each associate can produce 25 units per month.    -Given the above information, what is the total inventory carrying cost of a chase plan? A) $6,000 B) $4,000 C) $5,000 D) $4,500 E) Need more information to answer the question
-Given the above information, what is the total inventory carrying cost of a chase plan?


A) $6,000
B) $4,000
C) $5,000
D) $4,500
E) Need more information to answer the question

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