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The following information relates to a company’s aggregate production planning a...

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The 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

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