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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: (Assume that pattern of demand repeats each year, that is the demand in quarter 4 of the previous year was 13,000 units) 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

What is the total cost to hire workers under a matching (chase) strategy?

a. $4,500

b. $4,800

c. $6,400

d. $7,200

e. $14,400

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92497067

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