Question 9. Consider the information. Quarterly Demand = 4200, 3200, 4600, 3400, for quarters 1,2,3,4, respectively. Production Standard = 250 items/quarter Unit Hiring Cost = $250/FTE Unit Firing Cost = $350/FTE Unit Carrying Cost = $4/item/quarter With a beginning annual inventory of 800 and an ending annual inventory of 860, then which production plan represents a mixed strategy that satisfies all the requirements? (Note: Satisfying “all requirements” implies not level, not chase, no negative inventory, and meeting ending inventory objective). Select One Answer Quarter 1 Quarter 2 Quarter 3 Quarter 4 Production Plan A 3390 4020 4630 3420 Production Plan B 3865 3865 3865 3865 Production Plan C 3880 3880 3820 3820 Production Plan D 4215 3215 4615 3415 Production Plan E 3875 3885 3875 3825 F None of the above

Practical Management Science
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Author:WINSTON, Wayne L.
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Question 9. Consider the information.

Quarterly Demand = 4200, 3200, 4600, 3400, for quarters 1,2,3,4, respectively.

Production Standard = 250 items/quarter

Unit Hiring Cost = $250/FTE

Unit Firing Cost = $350/FTE

Unit Carrying Cost = $4/item/quarter

With a beginning annual inventory of 800 and an ending annual inventory of 860, then which production plan represents a mixed strategy that satisfies all the requirements?

(Note: Satisfying “all requirements” implies not level, not chase, no negative inventory, and meeting ending inventory objective).

Select One Answer

Quarter 1

Quarter 2

Quarter 3

Quarter 4

Production Plan A

3390

4020

4630

3420

Production Plan B

3865

3865

3865

3865

Production Plan C

3880

3880

3820

3820

Production Plan D

4215

3215

4615

3415

Production Plan E

3875

3885

3875

3825

F

None of the above

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