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The following information relates to a company’s aggregate production planning ...
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The following information relates to a company’s aggregate production planning activities:
Quarter
|
Demand Forecast
|
1
|
75,000
|
2
|
100,000
|
3
|
75,000
|
4
|
125,000
|
Beginning Workforce = 35 workers
Production per Employee = 1,250 units per quarter
Hiring Cost = $500 per worker
Firing Cost = $1,000 per worker
Inventory Carrying Cost = $20 per unit per quarter