Develop level capacity and matching demand plan

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Reference no: EM131228659

A local company makes athletic clothing and they are preparing aggregate production plans on a quarterly basis for the coming year for their line of women's wear. They have the following information available to develop a level capacity and a matching (chase) demand plan: Number of working days per quarter = 65 days Number of hours per day per person = 8 hours Labor to produce one unit = 5 hours Demand for four quarters respectively: 12,300, 12,500, 12,200, 13,000 units Cost of hiring a worker = $800 Cost of laying off a worker = $500 Inventory carrying cost per unit per year = $60 What is the total cost to hire workers under a matching (chase) demand plan? a) $4,500 b) $4,800 c) $6,400 d) $7,200 e) $14,400

Reference no: EM131228659

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