Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Excel Online Structured Activity: Level Production Strategy The ATV Corporation makes three models of all-terrain vehicles: Model A, Model B, and Model C. Model A

image text in transcribedimage text in transcribed

Excel Online Structured Activity: Level Production Strategy 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 180 units (30 units each of Model A and Model B, and 120 units of Model C). The firm desires to have an ending inventory of 220 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 x 5 days x 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 level production strategy and answer the following questions. X Open spreadsheet Questions 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. Forecast Demand Production (Units) Capacity Needed Hours Workers (Units) 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 220 8 160 180 Formulas #N/A #N/A Capacity Needed (Labor) : Hours Workers Forecast Total Forecast Ending Inventory Period Demand (Units)* Demand (Units)** Production (Units) Backlog (Units) January 320 February 260 March 380 April 460 May 640 June 700 July 820 August 640 September 600 October 540 November 360 December 240 TOTALS *excluding December Inventory Adiustment Total Forecast Demand (Units)** Production (Units) #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 #N/A Ending Inventory/ Backlog (Units) #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A #N/A Hou #N #N #N #N. #N #N #N #N #N #N #N. #N #N 5,960

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Fundamentals

Authors: John J. Wild

5th edition

1308500102, 1308500106, 78025753, 978-0078025754

Students also viewed these Accounting questions