The following information relates to a company's aggregate production planning activities: Quarter Demand Forecast 750 700 700 850 1 2 3 4 Beginning Workforce Production per Employee = 25 units per quarter Regular Production Cost = $5/unit Hiring Cost = $89 per worker Firing Cost = $283 per worker Inventory Carrying Cost = $7 per unit per quarter - 30 workers What is the total cost of the least expensive option between level and chase demand strategies?

Practical Management Science
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Author:WINSTON, Wayne L.
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The following information relates to a company's aggregate production
planning activities:
Quarter Demand
Forecast
750
700
700
850
1
2
3
4
Beginning Workforce = 30 workers
Production per Employee = 25 units per quarter
Regular Production Cost = $5/unit
Hiring Cost = $89 per worker
Firing Cost = $283 per worker
Inventory Carrying Cost = $7 per unit per quarter
What is the total cost of the least expensive option between level and chase
demand strategies?
Transcribed Image Text:The following information relates to a company's aggregate production planning activities: Quarter Demand Forecast 750 700 700 850 1 2 3 4 Beginning Workforce = 30 workers Production per Employee = 25 units per quarter Regular Production Cost = $5/unit Hiring Cost = $89 per worker Firing Cost = $283 per worker Inventory Carrying Cost = $7 per unit per quarter What is the total cost of the least expensive option between level and chase demand strategies?
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