The information for the next 2 problems is shown here. The following information relates to a companys aggregate production planning activities:

Beginning Workforce = 35 workers

Production per Employee = 1,250 units per quarter

Hiring Cost = $500 per worker Firing Cost = $1,000 per worker

Inventory Carrying Cost = $20 per unit per quarter

Quarter Demand Forecast

Q1 75,000

Q2 100,000

Q3 75,000

Q4 125,000

If a chase demand strategy is used, then the number of workers hired at the start of quarter 2 is:

a) 10

b) 20

c) 35

d) 80

If a level production strategy is used, then the inventory at the end of quarter 3 is

a) 18,750

b) 12,500

c) 25,650

d) 31,250