Business, 24.06.2019 16:30 peno211

(1 point) demand for quiggly pops follows an up and down pattern over the four quarters of a year, with peaks in the spring and winter months when special promotions are held. production is handled by a highly skilled local workforce during a regular 40-hour week (i. e., overtime and subcontracting are not used). the company likes to zero out its inventory at the end of a year so that it can start fresh each january. qp currently uses a level production strategy but would like to evaluate other options. the cost and demand figures are given below. beginning workforce = 40 workers; production per employee = 1,250 units per quarter; hiring cost = $500 per worker; firing cost = $500 per worker; inventory carrying cost = $1 per unit per quarter; regular production cost = $10 per unit; demand qtr 1 = 70,000; demand qtr 2 = 100,000; demand qtr 3 = 50,000; demand qtr 4 = 150,000. what is the cost of a level production strategy?

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