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The following information relates to a company’s aggregate production planning activities:   Quarter Demand Forecast 1 75,000 2 100,000 3 75,000 4 125,000   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 cost of the level production plan (inventory costs plus hiring and firing costs) is a) $20,000. b) $645,000. c) $1,250,000. d) $1,270,000.   Answer: d   Pls explain with steps

The following information relates to a company’s aggregate production planning activities:   Quarter Demand Forecast 1 75,000 2 100,000 3 75,000 4 125,000   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 cost of the level production plan (inventory costs plus hiring and firing costs) is a) $20,000. b) $645,000. c) $1,250,000. d) $1,270,000.   Answer: d   Pls explain with steps

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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The following information relates to a company’s aggregate production planning activities:

 

Quarter

Demand Forecast

1

75,000

2

100,000

3

75,000

4

125,000

 

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 cost of the level production plan (inventory costs plus hiring and firing costs) is

a) $20,000.

b) $645,000.

c) $1,250,000.

d) $1,270,000.

 

Answer: d

 

Pls explain with steps

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