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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

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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 January February March April May June FORECAST DEMAND 540 740 840 MONTE July August September October November December PORECAST DEMAND 140 140 240 640 740 840 540 340 240 Manufacturing cost is $215 per server, equally divided between materials and labor, Inventory storage cost is $5 per unit fer 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 215 units. Ten labor hours are required per DVD player. The workday is eight 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 (ie, 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.) March May June July January 540 February 740 April 540 August 140 September 240 October 840 November 740 December 840 840 340 240 140 Forecast Beginning inventory Available production Ending inventory Costs Lost sales + Inventory Total Total January 540 February 740 March 840 April 540 May 340 June 240 July 140 August 140 September 240 October 640 November 740 December 840 Total

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