Question

Shoncy Vdco Concepts produces a ınc ơ vo ote c pa crs o ьс ın cd to personal computors or v dco games wdood CS have much as cr access tme than apc nh such a computer vidco link, thc gan c bocomcs a vor calKS C CXponencc n ฮ smp C dmn ga mc where the oystick steers the vehicla, for exampla, rather than seeing computer graphics on the screen, the playar is actually viewing a sagment of a videodisc shot from a real moving vehicle. Depending on the action of the plaer (hitbng a guard ral, for example), the disc moves virtuaily nstantaneously to that segment and the player bacomes part of an actual accident of real vehicles (staged, of course). Shoney is trying to detenmine 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 pericd. Shoney is continuing in its R&D efforts to develop new applications and prefers not to cause any adverse feelings with the local workferce For the same reason, all emplayees shoulc put in full workweeks, even if this is nat the lowest-cost altemative The forecast for the next 12 months is MONTHFORECAST DEMAND MONTHFORECAST DEMAND Fobruary Merch 200 370 970 670 May 470 370 Manufacturing cost is $170 per set, equally divided between materials and labor Inventory storage cos: is $5 per month. A shortage of sets results in lost sales and is estimated to cost an overal S24 per unit short The inventory on hand at the beginning cf the planning period is 170 units. Ten labor hours are required per videodisc player. The workday is eight hours han or equal ta total annual demand .c., compute workforce level based on annual demand and annual capacity) (Leave no calls blank be certain to enter "o" wherover required. Indicate monthly shortages usinga negative ending inventory leval. Round up tha "number of workers" to the next whole number and round down your "monthly production rates" to the next lower whole number.) 670 970 670 470 370 180 370 770 970 7380 151 Beginning inventory 170 462 450 1222 1103 884 Avalable production Ending inventory Lost sale8

Answer 1

Total annual demand net of beginning inventory = 7380-170 = 7210

Total production hours required = 7210 * 10 hours per unit = 72100 hours

Total number of workdays in the year = 22*11+7 = 249

Annual production hours available per worker = 249*8 = 1992

Constant workforce required = Total production hours required / Production hours available per worker = 72100/1992 = 37 (rounded-up)

Available Production each month, except July = 37*22*8/10 = 651 (rounded-down)

Available production in July = 37*7*8/10 = 207 (rounded-down)

The aggregate plan based on constant workforce as determined above is following:

July August September October November December Total 770 April 7380 970 January FebruaryMarch 870 180 470 883 670 1102 940 1221 2 Forecast 3 Beginning inventory 4 Available Production 5 Ending invento 489 181 462 151 170 651 651 651 651 207 651 651 651 651 651 651 883 1102 1221 181 19 319 151 Total 29,965 2,820 7 Costs 8 Invento 9 Lost Sales 10 Total 6,105 5,510 4,415 2,310 2,445 4,700 9,744 456 7,656 2,820 39,709 1,632 4,415 5,510 6,105 5 2,310 2,445 4,700 0,456 0,90 7,656 1632 755 1992 176 176 12 Working days 13 Production hours available 176 176 176 176 176 176 176 176 176 72100 Total production hours required Constant workforce required 15 37 16 17 18

FORMULAS:

Cell	Formula	Copy to
C3	=MAX(0,B5)	C3:M3
B4	=ROUNDDOWN($B$16*B13/10,0)	B4:M4
B5	=B4+B3-B2	B5:M5
B8	=MAX(B5,0)*5	B8:M8
B9	=MAX(-B5,0)*24	B9:M9
B10	=SUM(B8:B9)	B10:M10
B13	=B12*8	B13:M13
B15	=(N2-B3)*10
B16	=ROUNDUP(B15/N13,0)
N13	=SUM(B13:M13)