Table 9.1
Quarter Forecast
1 80,000
2 110,000
3 100,000
4 110,000
Hiring Cost $100 per worker
Firing Cost $150 per worker
Inventory Carrying Cost $ 5 per unit
Production Per Employee 1000 units per/qtr
Beginning Work Force 100 workers
Using the data in Table 9.1, which of the following statements is true if the company maintains a level production strategy?
a) The total number of units inventoried for the 4-quarter period is 40,000 units.
b) The cost of the level production plan is $18,000.
c) There are 12,500 units inventoried in quarter 3.
d) A work force of 14 workers is maintained during the 4-quarter period.
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