Question: 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

A company is interested in developing a quarterly

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 $80 $40 $150 Firing cost (per unit decrease) Inventory cost (per unit) Stockout cost (per unit) Production (labor) cost (per unit) Subcontracting cost(per unit) Previous quarter's production Previous quarter's ending inventory (units) ....... $30 $60 1300 100 Quarter forecasts are 6000, 3000, 4000 and 5000, respectively. Suppose that you want to use a level plan with backorders (one that produces at the average demand over the four quarters). What is your total firing cost? (Do not round your intermediate calculations. Round your final answer to the nearest whole number.Only enter the number)

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