Shoney Video Concepts produces a line of videodisc players to be linked to personal computers for video games. Videodiscs have much faster access time than tape. With such a computer/video link, the game becomes a very realistic experience. In a simple driving game where the joystick steers the vehicle, for example, rather than seeing computer graphics on the screen, the player is actually viewing a segment of a videodisc shot from a real moving vehicle. Depending on the action of the player (hitting a guard rail, for example), the disc moves virtually instantaneously to that segment and the player becomes part of an actual accident of real vehicles (staged, of course).

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	520	July	120
February	720	August	120
March	820	September	220
April	520	October	620
May	320	November	720
June	220	December	820

Manufacturing cost is $230 per set, equally divided between materials and labor. Inventory storage cost is $5 per month. A shortage of sets results in lost sales and is estimated to cost an overall $25 per unit short.

The inventory on hand at the beginning of the planning period is 230 units. Ten labor hours are required per videodisc 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 (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 next lower whole number.)

January

February

March

April

May

June

July

August

September

October

November

December

Total

Forecast

520

720

820

520

320

220

120

120

220

620

720

820

Beginning inventory

Available production

Ending inventory

Costs

Total

Lost sales

Inventory

Total