Excel Online Activity: Aggregate Planning - Level Production Consider the situation faced by Golden Beverages, a producer of two major products - Old Fashioned and Foamy Delite root beers. Golden Beverages operates as a continuous flow factory and must plan future production for a demand forecast that fluctuates quite a bit over the year, with seasonal peaks in the summer and winter holiday season. How should Golden Beverages plan its overall production for the next 12 months in the face of such fluctuating demand if the level demand strategy is applied? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. IT [mm] Open spreadsheet Aggregate Planning: Level Production Strategy Production cost ($/unit) $70.00 Inventory holding cost ($/unit) $1.10 Lost sales cost ($/unit) $94.00 Overtime cost ($/unit) $6.70 $2.70 $4.70 Undertime cost ($/unit) Rate change cost ($/unit) Normal production rate (units) Ending inventory (previous Dec.) Month January February March April May June July August September October November December Average 2,000 1,100 Demand 1,600 1,200 2,200 2,800 3,100 3,400 3,600 3,400 2,300 1,100 2,000 2,500 D E Cumulative Cumulative Product Demand Production Availability Maximum LL F Ending Inventory G Lost Sales H Month January February March April May June July August September October November December Totals Total cost Production Cost Inventory Cost Lost Sales Cost Overtime Undertime Rate Change Cost Cost Cost + Formulas Month January February March April May June July August September October November December Average Month January February March April May June July August September) October November December Totals Total cost Demand #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 1,600 1,200 2,200 #N/A 2,800 3,100 3,400 Production 3,600 3,400 2,300 1,100 2,000 2,500 Cost P T Y Cumulative Demand #N/A #N/A Y #N/A P #N/A Y #N/A T #N/A Y #N/A Y #N/A Y #N/A Y #N/A Y #N/A Y #N/A Y Inventory Cost #N/A #N/A #N/A #N/A Y Y #N/A #N/A #N/A #N/A #N/A 7 #N/A #N/A #N/A r Y Y P F Y Y Y Y Y #N/A Y Y Production #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Lost Sales Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Maximum M Cumulative Product Availability #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Overtime Cost N #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Undertime Cost #N/A #N/A Ending Inventory 0 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Rate Change Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Lost Sales #N/A #N/A #N/A #N/A P Questions 1. What is the average monthly demand? Round your answer to two decimal places. barrels 2. What is the maximum monthly ending inventory? Round your answer to the nearest whole number. 3. What are the costs associated with level demand production plan? Round your answers to the nearest dollar. Inventory Cost Overtime Cost Month Totals barrels $ Production Cost $ $ Lost Sales $ 4. What is the total cost? Round your answer to the nearest dollar. Cost Undertime Cost $ Rate Change Cost $ Excel Online Activity: Aggregate Planning - Level Production Consider the situation faced by Golden Beverages, a producer of two major products - Old Fashioned and Foamy Delite root beers. Golden Beverages operates as a continuous flow factory and must plan future production for a demand forecast that fluctuates quite a bit over the year, with seasonal peaks in the summer and winter holiday season. How should Golden Beverages plan its overall production for the next 12 months in the face of such fluctuating demand if the level demand strategy is applied? The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. IT [mm] Open spreadsheet Aggregate Planning: Level Production Strategy Production cost ($/unit) $70.00 Inventory holding cost ($/unit) $1.10 Lost sales cost ($/unit) $94.00 Overtime cost ($/unit) $6.70 $2.70 $4.70 Undertime cost ($/unit) Rate change cost ($/unit) Normal production rate (units) Ending inventory (previous Dec.) Month January February March April May June July August September October November December Average 2,000 1,100 Demand 1,600 1,200 2,200 2,800 3,100 3,400 3,600 3,400 2,300 1,100 2,000 2,500 D E Cumulative Cumulative Product Demand Production Availability Maximum LL F Ending Inventory G Lost Sales H Month January February March April May June July August September October November December Totals Total cost Production Cost Inventory Cost Lost Sales Cost Overtime Undertime Rate Change Cost Cost Cost + Formulas Month January February March April May June July August September October November December Average Month January February March April May June July August September) October November December Totals Total cost Demand #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A 1,600 1,200 2,200 #N/A 2,800 3,100 3,400 Production 3,600 3,400 2,300 1,100 2,000 2,500 Cost P T Y Cumulative Demand #N/A #N/A Y #N/A P #N/A Y #N/A T #N/A Y #N/A Y #N/A Y #N/A Y #N/A Y #N/A Y #N/A Y Inventory Cost #N/A #N/A #N/A #N/A Y Y #N/A #N/A #N/A #N/A #N/A 7 #N/A #N/A #N/A r Y Y P F Y Y Y Y Y #N/A Y Y Production #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Lost Sales Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Maximum M Cumulative Product Availability #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Overtime Cost N #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Undertime Cost #N/A #N/A Ending Inventory 0 #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Rate Change Cost #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Lost Sales #N/A #N/A #N/A #N/A P Questions 1. What is the average monthly demand? Round your answer to two decimal places. barrels 2. What is the maximum monthly ending inventory? Round your answer to the nearest whole number. 3. What are the costs associated with level demand production plan? Round your answers to the nearest dollar. Inventory Cost Overtime Cost Month Totals barrels $ Production Cost $ $ Lost Sales $ 4. What is the total cost? Round your answer to the nearest dollar. Cost Undertime Cost $ Rate Change Cost $