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Shoney Video Concepts produces a line of video streaming servers that are linked to computers for storing movies. These devices have very fast access and
Shoney Video Concepts produces a line of video streaming servers that are linked to computers for storing movies. These devices
have very fast access and large storage capacity.
Shoney is trying to determine a production plan for the next months. The main criterion for this plan is that the employment level is
to be held constant over the period. Shoney is continuing in its R&D efforts to develop new applications and prefers not to prompt any
adverse feelings from the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the
lowestcost alternative. The forecast for the next months is
Manufacturing cost is $ per server, equally divided between materials and labor. Inventory storage cost is $ per month. A shortage
of servers results in lost sales and is estimated to cost an overall $ per unit short.
The inventory onhand at the beginning of the planning period is units. Twelve labor hours are required per DVD player. The
workday is nine hours.
Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume working days each
month except July, when the plant closes down for three weeks' vacation leaving eight working days Assume that total production
capacity is greater than or equal to total demand ie compute workforce level based on annual demand and annual capacity
Note: Leave the cells blank, whenever zero is required. Indicate monthly shortages using a negative ending inventory level.
Round up the "number of workers" to the next whole number and round down your "monthly production rates" to the next lower
whole number.
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