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 550 February 750 March 850 April 550 May 350 June 250 July 150 August 150 September 250 October 650 November 750 December 830 Manufacturing cost is $200 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 $21 per unit short. The inventory on hand at the beginning of the planning period is 200 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 23 working days each month except July, when the plant closes down for three weeks' vacation (leaving eight 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).
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
| MONTH | FORECAST DEMAND |
|---|---|
| January | 550 |
| February | 750 |
| March | 850 |
| April | 550 |
| May | 350 |
| June | 250 |
| July | 150 |
| August | 150 |
| September | 250 |
| October | 650 |
| November | 750 |
| December | 830 |
The inventory on hand at the beginning of the planning period is 200 units. Eight labor hours are required per DVD player. The workday is seven hours.
Develop an aggregate production
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