The ATV Corporation makes three models of all-terrain vehicles: Model A, Model B, and Model C. Model A uses a 0.4-liter engine, Model B uses a 0.5-liter engine, and Model C uses a 0.6-liter engine. The aggregate production plan is the twelve-month plan that combines all three models together in total monthly production. The planning horizon is twelve months. The APP determines the size of the workforce, which is the constrained resource. Assume that the beginning inventory for January is 120 units (30 units each of Model A and Model B, and 60 units of Model C). The firm desires to have an ending inventory of 160 units at the end of the year. On average, one unit of ATV requires eight labor hours to produce, and a worker contributes 160 hours (8 hours × 5 days × 4 weeks) per month. The data has been collected in the Microsoft Excel Online file attached. Answer the question below: 1. What are the totals of the forecast demand (including inventory adjustment for December), production, hours and workers associated with aggregate production plan? (Hint: find the total number of workers as the sum of workers required during each month.) Round your answers to the nearest whole number.

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ISBN:9781337406659
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The ATV Corporation makes three models of all-terrain vehicles: Model A, Model B, and Model C. Model A uses a 0.4-liter engine, Model B uses a 0.5-liter engine, and Model C uses a 0.6-liter engine. The aggregate production plan is the twelve-month plan that combines all three models together in total monthly production. The planning horizon is twelve months. The APP determines the size of the workforce, which is the constrained resource. Assume that the beginning inventory for January is 120 units (30 units each of Model A and Model B, and 60 units of Model C). The firm desires to have an ending inventory of 160 units at the end of the year. On average, one unit of ATV requires eight labor hours to produce, and a worker contributes 160 hours (8 hours × 5 days × 4 weeks) per month. The data has been collected in the Microsoft Excel Online file attached. Answer the question below:

1. What are the totals of the forecast demand (including inventory adjustment for December), production, hours and workers associated with aggregate production plan? (Hint: find the total number of workers as the sum of workers required during each month.) Round your answers to the nearest whole number.

 

Level Production Strategy
Aggregate Production Plan for the ATV Corporation
Desired End of Year Inventory
Worker hours needed per unit
Worker hours per month (8 hrs x 5 days x 4 weeks)
Ending Inventory Last December
December Inventory Adjustment
Desired Monthly Production
Period
January
February
March
April
May
June
July
August
September
October
November
December
TOTALS
Forecast Demand
(Units)*
320
300
240
460
600
720
840
660
600
560
400
260
5,960
Total Forecast
Demand (Units)**
160
8
160
120
Production (Units)
Ending Inventory/
Backlog (Units)
Capacity Needed (Labor)
Hours
Workers
Transcribed Image Text:Level Production Strategy Aggregate Production Plan for the ATV Corporation Desired End of Year Inventory Worker hours needed per unit Worker hours per month (8 hrs x 5 days x 4 weeks) Ending Inventory Last December December Inventory Adjustment Desired Monthly Production Period January February March April May June July August September October November December TOTALS Forecast Demand (Units)* 320 300 240 460 600 720 840 660 600 560 400 260 5,960 Total Forecast Demand (Units)** 160 8 160 120 Production (Units) Ending Inventory/ Backlog (Units) Capacity Needed (Labor) Hours Workers
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