Question

Shoney Video Concepts produces a line of videodisc players to be linked to personal computers for video games. Videodiscs have much faster access time than tape. With such a computer/video link, the game becomes a very realistic experience. In a simple driving game where the joystick steers the vehicle, for example, rather than seeing computer graphics on the screen, the player is actually viewing a segment of a videodisc shot from a real moving vehicle. Depending on the action of the player (hitting a guard rail, for example), the disc moves virtually instantaneously to that segment and the player becomes part of an actual accident of real vehicles (staged, of course).

    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 this is not the lowest-cost alternative. The forecast for the next 12 months is

MONTH	FORECAST DEMAND	MONTH	FORECAST DEMAND
January	610	July	210
February	810	August	210
March	910	September	310
April	610	October	710
May	410	November	810
June	310	December	910

     Manufacturing cost is $210 per set, equally divided between materials and labor. Inventory storage cost is $6 per month. A shortage of sets 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 210 units. Twelve labor hours are required per videodisc player. The workday is nine 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). (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 production rates" to the next lower whole number.)

- Please Provide the , Begginging Inventory , Available Production , Ending Inventory , Costs, Lost Sales , and Inventory , and Total for each Month

Thank you , will rate.

Answer 1

Total annual demand net of beginning inventory = 610+810+910+610+410+310+210+210+310+710+810+910-210 = 6610

Total production hours required = 6610 * 12 hours per unit = 79320 hours

Total number of workdays in the year = 23*11+8 = 261

Annual production hours available per worker = 261*9 = 2349

Constant workforce required = Total production hours required / Production hours availableper worker = 79320/2349 = 34  (rounded-up)

Available Production each month, except July = 23*34*9/12 = 586 (rounded-down)

Available production in July = 8*34*9/12 = 204  (rounded-down)

The aggregate plan based on constant workforce as determined above is following:

EXCEL FORMULA:

Cell	Formula	Copy to
C3	=MAX(0,B5)	C3:M3
B4	=ROUNDDOWN($B$16*B13/12,0)	B4:M4
B5	=B4+B3-B2	B5:M5
B8	=MAX(B5,0)*6	B8:M8
B9	=MAX(-B5,0)*21	B9:M9
B10	=SUM(B8:B9)	B10:M10
B13	=B12*9	B13:M13
B15	=(N2-B3)*12
B16	=ROUNDUP(B15/N13,0)
N13	=SUM(B13:M13)