Develop the appropriate production strategy

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Question: All-terrain vehicles (ATVs) are manufactured by the ATV Company in three models: Model A, Model B, and Model C. The engines in Model A are 0.4 litres, Model B are 0.5 litres, and Model C are 0.6 litres. The aggregate production plan is a 12-month plan that incorporates total monthly production from all three models. The time frame for planning is twelve months. The APP sets the workforce size, which is the limited resource. Suppose that the beginning inventory for January is 100 units, the intended monthly ending inventory is 100 units (30 units of Model A, 30 units of Model B, and 40 units of Model C), and the business wants to conclude the year with an ending inventory of 180 units. One ATV needs eight labour hours to create on average, and a worker contributes 160 hours (8 hours 5 days 4 weeks) every month. The information has been compiled in the Microsoft Excel Online file shown below. Develop the appropriate production strategy and answer the following questions using the Microsoft Excel Online file provided.

What are the totals for expected demand (including inventory adjustments for December), output, hours, and people connected with the aggregate production plan? (Hint: calculate the total number of workers as the sum of workers necessary each month.) Round your responses to the nearest full integer.

Reference no: EM133417057

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