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 I TET FORECAST DEMAND 160 MONTH January February March FORECAST DEMAND MONTH July August September October November December 560 760 860 560 360 320 160 April May June 260 660 760 860 Manufacturing cost is $160 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 $20 per unit short. The inventory on hand at the beginning of the planning period is 160 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 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 (Le., 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 560 February March 760 April 560 May 360 June 320 July 160 August 160 September 260 October 660 November 760 December 860 Total Forecast 860 Beginning inventory Available production Ending inventory Costs Total Lost sales Inventory Total
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 I TET FORECAST DEMAND 160 MONTH January February March FORECAST DEMAND MONTH July August September October November December 560 760 860 560 360 320 160 April May June 260 660 760 860 Manufacturing cost is $160 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 $20 per unit short. The inventory on hand at the beginning of the planning period is 160 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 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 (Le., 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 560 February March 760 April 560 May 360 June 320 July 160 August 160 September 260 October 660 November 760 December 860 Total Forecast 860 Beginning inventory Available production Ending inventory Costs Total Lost sales Inventory Total
Chapter8: Business Markets And Buying Behavior
Section8.1: Will Apple Pay Pay Off For Retailers?
Problem 2VC: When Apple introduced its mobile payment system in 2014, the company was looking to leverage the...
Related questions
Question
Transcribed Image Text: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
ΜΟΝΤΗ
January
February
March
FORECAST DEMAND
MONTH
560
760
860
560
360
320
July
August
September
October
FORECAST DEMAND
160
160
260
660
760
April
May
June
November
December
Manufacturing cost is $160 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 overallI $20 per unit short.
The inventory on hand at the beginning of the planning period is 160 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 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
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
560
760
860
560
360
320
160
160
260
660
760
860
Beginning inventory
Available production
Ending inventory
Costs
Total
Lost sales
Inventory
Total
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, operations-management and related others by exploring similar questions and additional content below.