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Problem 19-13 (Algo) Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These devices have 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 is to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the lowest-cost alternative. The forecast for the next 12 months is MONTH FORECAST DEMAND January February March April 530 730 830 530 May June 330 230 July 130 August 130 September 230 October 630 730 800 November December Manufacturing cost is $210 per server, equally divided between materials and labor. Inventory storage cost is $4 per unit per month and is assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $20 per unit short. The inventory on hand at the beginning of the planning period is 210 units. Eight labor hours are required per DVD player. The workday is seven hours. Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 22 working days each month except July, when the plant closes down for three weeks' vacation (leaving seven working days). Assume that total annual production capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "0" wherever 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 "Avallable production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Total Costs January February March April May June July August September October November December Total 530 730 830 530 330 230 130 130 230 630 730 800 210 Total

Problem 19-13 (Algo) Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These devices have 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 is to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the lowest-cost alternative. The forecast for the next 12 months is MONTH FORECAST DEMAND January February March April 530 730 830 530 May June 330 230 July 130 August 130 September 230 October 630 730 800 November December Manufacturing cost is $210 per server, equally divided between materials and labor. Inventory storage cost is $4 per unit per month and is assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $20 per unit short. The inventory on hand at the beginning of the planning period is 210 units. Eight labor hours are required per DVD player. The workday is seven hours. Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 22 working days each month except July, when the plant closes down for three weeks' vacation (leaving seven working days). Assume that total annual production capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "0" wherever 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 "Avallable production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Total Costs January February March April May June July August September October November December Total 530 730 830 530 330 230 130 130 230 630 730 800 210 Total

Excel Applications for Accounting Principles
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
ChapterMB: Model-building Problems
Section: Chapter Questions
Problem 21M
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Problem 19-13 (Algo) Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These devices have 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 is to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the lowest-cost alternative. The forecast for the next 12 months is MONTH FORECAST DEMAND January February March April 530 730 830 530 May June 330 230 July 130 August 130 September 230 October 630 730 800 November December Manufacturing cost is $210 per server, equally divided between materials and labor. Inventory storage cost is $4 per unit per month and is assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $20 per unit short. The inventory on hand at the beginning of the planning period is 210 units. Eight labor hours are required per DVD player. The workday is seven hours. Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 22 working days each month except July, when the plant closes down for three weeks' vacation (leaving seven working days). Assume that total annual production capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "0" wherever 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 "Avallable production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Total Costs January February March April May June July August September October November December Total 530 730 830 530 330 230 130 130 230 630 730 800 210 Total
Transcribed Image Text:Problem 19-13 (Algo) Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These devices have 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 is to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the lowest-cost alternative. The forecast for the next 12 months is MONTH FORECAST DEMAND January February March April 530 730 830 530 May June 330 230 July 130 August 130 September 230 October 630 730 800 November December Manufacturing cost is $210 per server, equally divided between materials and labor. Inventory storage cost is $4 per unit per month and is assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $20 per unit short. The inventory on hand at the beginning of the planning period is 210 units. Eight labor hours are required per DVD player. The workday is seven hours. Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 22 working days each month except July, when the plant closes down for three weeks' vacation (leaving seven working days). Assume that total annual production capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "0" wherever 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 "Avallable production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Total Costs January February March April May June July August September October November December Total 530 730 830 530 330 230 130 130 230 630 730 800 210 Total
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