Question: Problem 8 - 1 3 ( Algo ) Shoney Video Concepts produces a line of video streaming servers that are linked to computers for storing
Problem Algo
Shoney Video Concepts produces a line of video streaming servers that are linked to computers for storing movies. These devices have very fast access and large storage capacity.
Shoney is trying to determine a production plan for the next 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 prompt any adverse feelings from the local workforce. For the same reason, all employees should put in full workweeks, even if that is not the lowestcost alternative. The forecast for the next months is
tableMONTHFORECAST DEMANDJanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecember
Manufacturing cost is $ per server, equally divided between materials and labor. Inventory storage cost is $ per month. A shortage of servers results in lost sales and is estimated to cost an overall $ per unit short.
The inventory onhand at the beginning of the planning period is units. Fourteen labor hours are required per DVD player. The workday is eight hours.
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