he following information relates to a company's aggregate production planning activities: Quarter Demand Forecast 1 37,500 2 45,000 3 25,000 4 62,500 Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a level production strategy is used the number of units in inventory at the end of quarter 3 is

Question

Monique Hodges

Business

8 December, 08:29

he following information relates to a company's aggregate production planning activities: Quarter Demand Forecast 1 37,500 2 45,000 3 25,000 4 62,500 Beginning Workforce = 125 workers Production per Employee = 500 units per quarter Hiring Cost = $750 per worker Firing Cost = $1,500 per worker Inventory Carrying Cost = $10 per unit per quarter If a level production strategy is used the number of units in inventory at the end of quarter 3 is

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Donut · Answer 1

20,000 units

Explanation:

Number of units in inventory at the end of quarter 3

= 3 (42,500)

=127,500

Hence:

127,500 - 37,500-45,000-25,000

= 20,000 units

Therefore if production strategy is used the number of units in inventory at the end of quarter 3 is 20,000 units