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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 prompt any adverse feelings from 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 January February March April May June FORECAST DEMAND 520 720 820 520 320 220 Forecast Beginning inventory Available production Ending inventory Costs Lost sales Inventory Total MONTH July August September Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 per month. A shortage of servers results in lost sales and is estimated to cost an overall $25 per unit short. January October November December The inventory on-hand at the beginning of the planning period is 230 units. Ten labor hours are required per DVD player. The workday is eight hours. 520 Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days each month except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total production capacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leave the 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.) 0 FORECAST DEMAND 120 120 February 720 220 620 0 720 820 March 820 0 April 520 0 May 320 0 June 220 0 July 120 0 August 120 0 September 220 0 October Noveml 620 0

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 prompt any adverse feelings from 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 January February March April May June FORECAST DEMAND 520 720 820 520 320 220 Forecast Beginning inventory Available production Ending inventory Costs Lost sales Inventory Total MONTH July August September Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 per month. A shortage of servers results in lost sales and is estimated to cost an overall $25 per unit short. January October November December The inventory on-hand at the beginning of the planning period is 230 units. Ten labor hours are required per DVD player. The workday is eight hours. 520 Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days each month except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total production capacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leave the 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.) 0 FORECAST DEMAND 120 120 February 720 220 620 0 720 820 March 820 0 April 520 0 May 320 0 June 220 0 July 120 0 August 120 0 September 220 0 October Noveml 620 0

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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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 prompt any adverse feelings from 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 January February March April May June FORECAST DEMAND 520 720 820 520 320 220 Forecast Beginning inventory Available production Ending inventory Costs Lost sales Inventory Total Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 per month. A shortage of servers results in lost sales and is estimated to cost an overall $25 per unit short. MONTH July August September October November December The inventory on-hand at the beginning of the planning period is 230 units. Ten labor hours are required per DVD player. The workday is eight hours. January Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days each month except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total production capacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leave the 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.) 520 0 FORECAST DEMAND February 720 120 120 220 620 0 720 820 March 820 0 < Prev April 520 0 8 of 14 May 320 0 June Next > 220 0 July 120 0 August September 120 0 220 0 October 620 0 Noveml
Transcribed Image Text: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 prompt any adverse feelings from 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 January February March April May June FORECAST DEMAND 520 720 820 520 320 220 Forecast Beginning inventory Available production Ending inventory Costs Lost sales Inventory Total Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 per month. A shortage of servers results in lost sales and is estimated to cost an overall $25 per unit short. MONTH July August September October November December The inventory on-hand at the beginning of the planning period is 230 units. Ten labor hours are required per DVD player. The workday is eight hours. January Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 23 working days each month except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total production capacity is greater than or equal to total demand. (i.e., compute workforce level based on annual demand and annual capacity). (Leave the 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.) 520 0 FORECAST DEMAND February 720 120 120 220 620 0 720 820 March 820 0 < Prev April 520 0 8 of 14 May 320 0 June Next > 220 0 July 120 0 August September 120 0 220 0 October 620 0 Noveml
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