Manufacturing cost is $200 per server, equally divided between materials and labor. Inventory storage cost is $6 per month. Ashortage of servers results in lost sales and is estimated to cost an overall $21 per unit short.The inventory on-hand at the beginning of the planning period is 200 units. Twelve labor hours are required per DVD player. Theworkday is nine hours.Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days eachmonth except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total productioncapacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leavethe cells blank, whenever zero (0) is required. Indicate monthly shortages using a negative ending inventory level. Round up the"number of workers" to the next whole number and round down your "monthly production rates" to the next lower whole number.)JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotalForecast640840940640440340240240340740840940Beginning inventory200219438757776595Available production621621621621621621Ending inventory219438757776595314CostsLost salesInventory1,3142,6284,5424,6563,5701,884Total1,3142,6284,5424,6563,5701,884 Shoney Video Concepts produces a line of video streaming servers that are linked to computers for storing movies. These deviceshave very fast access and large storage capacity.Shoney is trying to determine a production plan for the next 12 months. The main criterion for this plan is that the employment level isto be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to prompt anyadverse feelings from the local workforce. For the same reason, all employees should put in full workweeks, even if that is not thelowest-cost alternative. The forecast for the next 12 months isITEMONTHFORECAST DEMANDMONTHFORECAST DEMANDJanuaryFebruary640JulyAugustSeptemberOctober240840240March940340AprilMay640740440November840June340December940Manufacturing cost is $200 per server, equally divided between materials and labor. Inventory storage cost is $6 per month. Ashortage of servers results in lost sales and is estimated to cost an overall $21 per unit short.The inventory on-hand at the beginning of the planning period is 200 units. Twelve labor hours are required per DVD player. Theworkday is nine hours.Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days eachmonth except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total productioncapacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leavethe cells blank, whenever zero (0) is required. Indicate monthly shortages using a negative ending inventory level. Round up the"number of workers" to the next whole number and round down your "monthly production rates" to the next lower whole number.)

Manufacturing price refers to the overall fees incurred by means of a employer within the manner of…

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14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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