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

Question 20

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 = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a level production strategy is used,the number of units in inventory at the end of quarter 3 is A) 0 B) 2,500 C) 5,000 D) 20,000 Beginning Workforce = 125 workers
Production per Employee = 500 units per quarter
Hiring Cost = $750 per worker
Firing Cost = $1,500 per worker
Inventory Carrying Cost = $10 per unit per quarter
If a level production strategy is used,the number of units in inventory at the end of quarter 3 is


A) 0
B) 2,500
C) 5,000
D) 20,000

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