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Business, 21.06.2020 04:57 ethan5738

A company is interested in developing a quarterly aggregate production plan but they are not sure if a level strategy with backorders or a chase strategy would be better. They have the following information available regarding their production operation Hiring Cost (per unit increase) $40 Firing (per unit decrease) $80 Inventory Cost (per unit) $40 $150 Stockout (per unit) Production (Labor) cost (per unit) Subcontracting cost (per unit) $30 $60 Previous quarter's production 1300 Previous quarter's ending inventory 0 Quarter forecasts are 4000, 2000, 4000 and 5000, respectively. Suppose that you want to use a chase plan. What is firing cost of quarter 2? (Do not round your intermediate calculations. Round your final answer to the nearest whole number.)

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