Pennington Cabinets is a manufacturer of several different lines of kitchen and bathroom cabinets that are sold through major home improvement retailers. Pennington's marketing vice president has come up with the following combined sales forecast for the next 12 months: MONTH SALES FORECAST (CABINET SETS) January 750 February 760 March 800 April 800 May 820 June 840 July 910 August 910 September 910 October 880 November 860 December 840 1/4 QUESTION-1.1: Develop a graph that shows sales forecast and capacity per month in the same figure. Comment on the shape of the forecast. Will Pennington be able to meet expected demand in the peak months with just regular production? In addition to the sales forecast, Pennington has also developed the planning values shown in Table 1. Table 1. Planning Values for Pennington Cabinets per $2,000 cabinet set $2,062 per cabinet set $40 per cabinet set, per month 20 hours CABINET SET PLANNING VALUES Regular production cost: Ovetime production cost: Average monthly inventory holding cost: Average labor hours per cabinet set: PRODUCTION PLANNING VALUES Maximum regular production per month: Allowable overtime production per month: WORKFORCE PLANNING VALUES Hours worked per month per employee: Estimated cost to hire a worker: Estimated cost to lay off a worker: 848 cabinet sets 1/10 of regular production 160 hours $1,750 $1,500 Pennington Cabinets is a manufacturer of several different lines of kitchen and bathroom cabinets that are sold through major home improvement retailers. Pennington's marketing vice president has come up with the following combined sales forecast for the next 12 months: MONTH SALES FORECAST (CABINET SETS) January 750 February 760 March 800 April 800 May 820 June 840 July 910 August 910 September 910 October 880 November 860 December 840 1/4 QUESTION-1.1: Develop a graph that shows sales forecast and capacity per month in the same figure. Comment on the shape of the forecast. Will Pennington be able to meet expected demand in the peak months with just regular production? In addition to the sales forecast, Pennington has also developed the planning values shown in Table 1. Table 1. Planning Values for Pennington Cabinets per $2,000 cabinet set $2,062 per cabinet set $40 per cabinet set, per month 20 hours CABINET SET PLANNING VALUES Regular production cost: Ovetime production cost: Average monthly inventory holding cost: Average labor hours per cabinet set: PRODUCTION PLANNING VALUES Maximum regular production per month: Allowable overtime production per month: WORKFORCE PLANNING VALUES Hours worked per month per employee: Estimated cost to hire a worker: Estimated cost to lay off a worker: 848 cabinet sets 1/10 of regular production 160 hours $1,750 $1,500
