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?
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
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter11: Simulation Models
Section: Chapter Questions
Problem 47P
Related questions
Question
![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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fcbb5d04d-84e8-4103-90ce-377d161768f0%2F45f477be-971b-4d3b-90e6-a41cab4a8ca6%2Fsmq7yt07_processed.png&w=3840&q=75)
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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