Question
Shoney Video Concepts produces a line of video streaming servers that are linked to personal computers for storing movies. These devices have very fast access
Shoney Video Concepts produces a line of video streaming servers that are linked to personal 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 12 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 cause any adverse feelings with the local workforce. For the same reason, all employees should put in full workweeks, even if this is not the lowest-cost alternative. The forecast for the next 12 months is
| MONTH | FORECAST DEMAND | MONTH | FORECAST DEMAND |
| January | 640 | July | 240 |
| February | 840 | August | 240 |
| March | 940 | September | 340 |
| April | 640 | October | 740 |
| May | 440 | November | 840 |
| June | 340 | December | 940 |
Manufacturing cost is $200 per server, equally divided between materials and labor. Inventory storage cost is $6 per unit per month and is assigned based on the ending inventory level. A shortage of servers results in lost sales and is estimated to cost an overall $21 per unit short.
The inventory on hand at the beginning of the planning period is 200 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 23 working days each month except July, when the plant closes down for three weeks' vacation (leaving eight working days). Assume that total annual production capacity is greater than or equal to total annual demand (i.e., compute workforce level based on annual demand and annual capacity). (Leave no cells blank - be certain to enter "0" wherever 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 "Available production" values to the nearest whole number.)
Could you please correct incorrect ones. Table has correct and incorrect answers highlighted
| January | February | March | April | May | June | July | August | September | October | November | December | Total | |
| Forecast | 640 | 840 | 940 | 640 | 440 | 340 | 240 | 240 | 340 | 740 | 840 | 940 | 7,180selected answer correct |
| Beginning inventory | 200selected answer correct | 181selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 181selected answer correct | 462selected answer correct | 438selected answer correct | 819selected answer correct | 1,100selected answer correct | 981selected answer correct | 762selected answer correct | |
| Available production | 621selected answer correct | 621selected answer correct | 621selected answer correct | 621selected answer correct | 621selected answer correct | 621selected answer correct | 621selected answer incorrect | 621selected answer correct | 621selected answer correct | 621selected answer correct | 621selected answer correct | 621selected answer correct | 77,047selected answer incorrect |
| Ending inventory | 181selected answer correct | (38)selected answer correct | (319)selected answer correct | (19)selected answer correct | 181selected answer correct | 462selected answer correct | 438selected answer correct | 819selected answer correct | 1,100selected answer correct | 981selected answer correct | 762selected answer correct | 443selected answer correct | |
| Costs | Total | ||||||||||||
| Lost sales | 0selected answer correct | 798selected answer correct | 6,699selected answer correct | 399selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 7,896selected answer correct |
| Inventory | 1,086selected answer correct | 0selected answer correct | 0selected answer correct | 0selected answer correct | 1,086selected answer correct | 2,772selected answer correct | 2,628selected answer correct | 4,914selected answer correct | 6,600selected answer correct | 5,886selected answer correct | 4,572selected answer correct | 2,658selected answer correct | 32,202selected answer correct |
| Total | 125,286selected answer incorrect | 124,998selected answer incorrect | 130,899selected answer incorrect | 124,599selected answer incorrect | 125,286selected answer incorrect | 126,972selected answer incorrect | 45,828selected answer incorrect | 129,114selected answer incorrect | 130,800selected answer incorrect | 130,086selected answer incorrect | 128,772selected answer incorrect | 126,858selected answer incorrect | 1,449,498 |
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Financial and Managerial Accounting
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
13th edition
1285866304, 978-1285866307
