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 that is not the lowest-cost alternative. The forecast for the next 12 months is

MONTH	FORECAST DEMAND	MONTH	FORECAST DEMAND
January	600	July	200
February	800	August	200
March	900	September	300
April	600	October	700
May	400	November	800
June	300	December	900

Manufacturing cost is $200 per server, equally divided between materials and labor. Inventory storage cost is $5 per month. A shortage of servers results in lost sales and is estimated to cost an overall $20 per unit short.

The inventory on hand at the beginning of the planning period is 200 units. Ten labor hours are required per server. The workday is eight hours.

Develop an aggregate production schedule for the year using a constant workforce. For simplicity, assume 22 working days each month except July, when the plant closes down for three weeks vacation (leaving seven 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 production rates" to the nearest whole number.)

January

February

March

April

May

June

July

August

September

October

November

December

Total

Forecast

600

800

900

600

400

300

200

200

300

700

800

900

Beginning inventory

Available production

Ending inventory

Costs

Total

Lost sales

Inventory

Total