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
B) 12,500
C) 25,650
D) 31,250 units
Correct Answer:
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