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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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