Excel Online Structured Activity: Chase Production Strategy

The ATV Corporation makes three models of all$-$terrain vehicles: Model A$,$ Model B$,$ and Model C$.$

Model A uses a $0\mathrm{.}4-$liter engine, Model B uses a $0\mathrm{.}5-$liter engine, and Model C uses a $0\mathrm{.}6-$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 and that the desired monthly ending inventory is $140$ units $(30$ units each of Model A

and Model B$,$ and $80$ units of Model C$),$ and the firm desires to have an ending inventory of $200$

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 below. Use the Microsoft Excel Online file below to

develop the chase production strategy and answer the following questions.

Open spreadsheet

Questions

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.