Table 9.1 Quarter Forecast 1 80,000 2 110,000 3 100,000 4 110,000 Hiring Cost $1
ID: 383241 • Letter: T
Question
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.
SHOW THE CALCULATIONS
Explanation / Answer
a) The total number of units inventoried for the 4-quarter period is 40,000 units : True
b) The cost of the level production plan is $18,000.: False
c) There are 12,500 units inventoried in quarter 3.: False
d) A work force of 14 workers is maintained during the 4-quarter period. : False
Q1 Q2 Q3 Q4 Total Avg Demand 80000 110000 100000 110000 400000 100000 Avg Prod 100000 100000 100000 100000 400000 Prev inv+Prod-demand Inv 20000 10000 10000 0 40000 Ans A TRUE Prod/1000 Workforce 100 100 100 100 Ans D FALSE 5 per unit Inv cost 200000 Ans B FALSE Ans c FasleRelated Questions
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