Business, 10.04.2020 18:37 luna163

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

600

July

200

February

800

August

200

March

900

September

300

April

600

October

700

May

400

November

800

June

300

December

900

Manufacturing cost is $200 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 200 units. Ten labor hours are required per videodisc player. The workday is eight hours. Develop and 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 production capacity is greater than or equal to total demand.

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