Scheduling

Part I:

Required: Provide a monthly production schedule for the fiscal year beginning January 1, x1

based on the following information.

Otter Land manufactures and sells sea otter plush animals locally year round, but most

are sold during the summer months when the Water World park opens for water shows and rides.

Otter Land follows a policy of stabilizing employment for the core manufacturing work force

throughout the year. Management believes that without this policy, the skilled workers who give

the sea otter toys their special personality would quit. Therefore, the minimum production is

50,000 toys per month. By adding temporary workers, production can be increased to as much

as 150,000 toys per month; however, holding inventory longer than absolutely necessary is

against company policy. It is an inefficient use of resources. (Hint: note the minimum and

maximum production capacity.)

The inventory on both December 31, 20x0 and December 31, 20x1 must be 60,000

finished toys. Each monthly ending inventory must equal or exceed the next month's sales

projections. The sales forecasts for the next fiscal year are based on company history, tourism

trends, population, age of the population, and disposable income.

Sales projections by month, in terms of numbers of toys, are as follows:

January, 20x1 60,000 July 200,000

February 60,000 August 150,000

March 120.000 September 100,000

April 80,000 October 50,000

May 100,000 November 60,000

June 200,000 December 100,000