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Month Demand January 1,000 February 1,100 March 1,000 April 1,200 May 1,500 June 1,600 July 1,600 August 900 September 1,100 October 800 November 1,400 December 1,700

The document outlines a production planning model for a 12 month period. It provides input data on monthly demand, costs of materials, labor, inventory holding, and more. The model outputs the optimal hiring/layoffs, workforce levels, overtime, inventory levels, stockouts, and subcontracting needs to meet demand at minimum total cost of $360.4 million. A production plan graph shows total production matching fluctuating demand levels, with overtime production supplementing inventory when needed.

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Sthepani7
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99 views4 pages

Month Demand January 1,000 February 1,100 March 1,000 April 1,200 May 1,500 June 1,600 July 1,600 August 900 September 1,100 October 800 November 1,400 December 1,700

The document outlines a production planning model for a 12 month period. It provides input data on monthly demand, costs of materials, labor, inventory holding, and more. The model outputs the optimal hiring/layoffs, workforce levels, overtime, inventory levels, stockouts, and subcontracting needs to meet demand at minimum total cost of $360.4 million. A production plan graph shows total production matching fluctuating demand levels, with overtime production supplementing inventory when needed.

Uploaded by

Sthepani7
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Input Data (Demand) Input Data (Costs etc.

Month Demand Item Cost


January 1,000 Materials cost/unit $ 20
February 1,100 Inventory holding cost/unit/month 3.0
March 1,000 Marginal cost of stockout/unit/month
April 1,200 Hiring and training cost/worker
May 1,500 Layoff cost/worker
June 1,600 Labor hours required/unit 0.1667
July 1,600 Regular time cost/hour 20.0
August 900 Over time cost/hour 30.0
September 1,100 Marginal subcontracting cost/unit
October 800
November 1,400 Initial Workforce size 1250
December 1,700 Maximum overtime per worker per month 20
Starting inventory ('000s) 50
Ending inventory ('000s) 50
Aggregate Plan Decision Variables (demand, inventory, production in '000s)

Ht Lt Wt Ot It St Ct
Period # Hired # Laid off # Workforce Overtime Inventory Stockout Subcontract
0 0 0 1,250 0 50 0 0
1 0 0 1,250 0.0 50.0 0 0
2 0 0 1,250 0.0 150.0 0 0
3 0 0 1,250 25000.0 500.0 0 0
4 0 0 1,250 25000.0 650.0 0 0
5 0 0 1,250 25000.0 500.0 0 0
6 0 0 1,250 25000.0 250.0 0 0
7 0 0 1,250 25000.0 0.0 0 0
8 0 0 1,250 0.0 0.0 0 0
9 0 0 1,250 0.0 50.0 0 0
10 0 0 1,250 0.0 450.0 0 0
11 0 0 1,250 25000.0 400.0 0 0
12 0 0 1,250 25000.0 50.0 0 0

Costs
Period Hiring Lay off Regular time Overtime Inventory Stockout Subcontract
1 0 0 4,000,000 0 150,000 0 0
2 0 0 4,000,000 0 450,000 0 0
3 0 0 4,000,000 750,000 1,500,000 0 0
4 0 0 4,000,000 750,000 1,950,000 0 0
5 0 0 4,000,000 750,000 1,500,000 0 0
6 0 0 4,000,000 750,000 750,000 0 0
7 0 0 4,000,000 750,000 0 0 0
8 0 0 4,000,000 0 0 0 0
9 0 0 4,000,000 0 150,000 0 0
10 0 0 4,000,000 0 1,350,000 0 0
11 0 0 4,000,000 750,000 1,200,000 0 0
12 0 0 4,000,000 750,000 150,000 0 0

Total cost = $ 360,400,000


Restricciones

Pt
Production Demand Inventory Overtime Production OT Production

1000 1,000 0 25000 200000 0


1200 1,100 0 25000 0 0
1350 1,000 0 0 0 150
1350 1,200 0 0 0 150
1350 1,500 0 0 0 150
1350 1,600 0 0 0 150
1350 1,600 0 0 0 150
900 900 0 25000 300000 0
1150 1,100 0 25000 50000 0
1200 800 0 25000 0 0
1350 1,400 0 0 0 150
1350 1,700 0 0 0 150

Material
20,000,000
24,000,000
27,000,000
27,000,000
27,000,000
27,000,000
27,000,000
18,000,000
23,000,000
24,000,000
27,000,000
27,000,000
298,000,000
Production Plan for Year

1800.0

1600.0

1400.0

1200.0

1000.0 Inventory
Total Production
Demand
800.0 Overtime Production

600.0

400.0

200.0

0.0
1 2 3 4 5 6 7 8 9 10 11 12
Month

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