
Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Transcribed Image Text:In this problem we have a company's aggregate production planning activities:
Quarter
Demand Forecast
1
41,500
2
45,000
3
25,000
4
62,500
Beginning Workforce = 87 workers
Production per Employee = 500 units per quarter
Hiring Cost = $850 per worker
Firing Cost = $1,600 per worker
Inventory Carrying Cost = $8 per unit per quarter
Regular Production cost = $ 4 per unit
If a Level Production strategy is used, the annual inventory cost is:
14000
69000
168000
O 172000
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