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 chase demand strategy is used,the total hiring and firing costs for the production plan is
A)$67,500
B)$135,000
C)$202,500
D)$337,500

Question

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 chase demand strategy is used,the total hiring and firing costs for the production plan is
A)$67,500 
B)$135,000 
C)$202,500 
D)$337,500

Quizplus · Accepted Answer

The Answer of 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 chase demand strategy is used,the total hiring and firing costs for the production plan is
A)$67,500 
B)$135,000 
C)$202,500 
D)$337,500

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