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.
-A lamp manufacturer enters a six-month planning a period with forecasts as indicated in the table. To make things as stable as possible, the sales and operations planner decides to use a level plan throughout the period. The starting inventory is 240 units, and the planner would like to end this period with no inventory. How much should they produce in September?
A) 302 units
B) 305 units
C) 265 units
D) 351 units
E) Need more information to answer the question
Correct Answer:
Verified
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