The ATV Corporation makes three models of all-terrain vehicles: Model A, Model B, and Model C. Model A uses a 0.4-liter engine, Model B uses a 0.5-liter engine, and Model C uses a 0.6-liter engine. The aggregate production plan is the twelve-month plan that combines all three models together in total monthly production. The planning horizon is twelve months. The APP determines the size of the workforce, which is the constrained resource. Assume that the beginning inventory for January is 100 units (30 units each of Model A and Model B, and 40 units of Model C). The firm desires to have an ending inventory of 140 units at the end of the year.

On average, one unit of ATV requires eight labor hours to produce, and a worker contributes 160 hours (8 hours 5 days 4 weeks) per month. The data has

been collected in the Microsoft Excel Online file below. Use the Microsoft Excel Online file below to develop the level production strategy and answer the following questions

What are the totals of the forecast demand (including inventory adjustment for December), production, hours and workers associated with aggregate production plan? (Hint: find the total number of workers as the sum of workers required during each month.) Round

vour answers to the nearest whole number

Forecast Demand :

Production :

Capacity Needed :

hours ?

Workers ?

Level Production Strategy c D E F G Aggregate Production Plan for the ATV Corporation \begin{tabular}{|c|r|} \hline Desired End of Year Inventory & 140 \\ \hline Worker hours needed per unit & 8 \\ \hline Worker hours per month (8 hrs 5 days 4 weeks ) & 160 \\ \hline Ending Inventory Last December & 100 \\ \hline December Inventory Adjustment & \\ \hline Desired Monthly Production & \\ \hline \end{tabular} Capacity Needed (Labor) \begin{tabular}{|lr|} \hline Period & \multicolumn{1}{c|}{ Forecast } \\ \hline Demand (Units) \\ \hline January & 100 \\ \hline February & 60 \\ \hline March & 300 \\ \hline April & 420 \\ \hline May & 600 \\ \hline June & 740 \\ \hline July & 860 \\ \hline August & 740 \\ \hline September & 540 \\ \hline October & 400 \\ \hline November & 220 \\ \hline December & 260 \\ \hline TOTALS & 5,240 \\ \hline \end{tabular} Total Forecast Ending Inventoryl Production (Units) Backlog (Units) Hours Workers "excluding December Inventory Adjustment " including December Inventory Adjustment Use the area below to draw a line chart for the demand, inventory, and production under the level production strategy