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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 520 720 March 820 April 520 May 320 June 220 July 120 August 120 September 220 October 620 November December 720 820 Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 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 $25 per unit short. 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. 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 (ie., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "O" 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 "Available production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Costs Total January February March April May June July August September October 520 720 820 520 320 220 120 120 220 620 November December Total 720 820 Total

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 520 720 March 820 April 520 May 320 June 220 July 120 August 120 September 220 October 620 November December 720 820 Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 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 $25 per unit short. 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. 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 (ie., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "O" 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 "Available production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Costs Total January February March April May June July August September October 520 720 820 520 320 220 120 120 220 620 November December Total 720 820 Total

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 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 520 720 March 820 April 520 May 320 June 220 July 120 August 120 September 220 October 620 November December 720 820 Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 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 $25 per unit short. 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. 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 (ie., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "O" 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 "Available production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Costs Total January February March April May June July August September October 520 720 820 520 320 220 120 120 220 620 November December Total 720 820 Total
Transcribed Image Text: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 520 720 March 820 April 520 May 320 June 220 July 120 August 120 September 220 October 620 November December 720 820 Manufacturing cost is $230 per server, equally divided between materials and labor. Inventory storage cost is $5 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 $25 per unit short. 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. 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 (ie., compute workforce level based on annual demand and annual capacity). Note: Leave no cells blank - be certain to enter "O" 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 "Available production" values to the nearest whole number. Forecast Beginning inventory Available production Ending inventory Lost sales Inventory Costs Total January February March April May June July August September October 520 720 820 520 320 220 120 120 220 620 November December Total 720 820 Total
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