Problem 1:
Mama’s Stuffin’ is a popular food item during the fall and winter months, but it is marginal in the spring and summer. Given the following costs and demand forecasts, design a production plan for Mama’s Stuffin’ using linear programming and Excel Solver. Indicate the cost of the plan.
Overtime capacity per month regular production
Subcontracting capacity per month unlimited
Regular production cost $30 per pallet
Overtime production cost $40 per pallet
Subcontracting cost $50 per pallet
Holding cost $2 per pallet
Beginning workforce 10 workers
Production rate 200 pallets per worker per month
Hiring cost $5000 per worker
Firing cost $8000 per worker
1. In the optimum solution, how many workers are used in March through June?
2. How many workers are used in July through February?
3. In what months is overtime used?
4. What is the cost of the solution?
Problem 2:
Fashion Apparel Direct (FAD) outsources production of its line of women’s wear to three major suppliers. The aggregate planning process at FAD consists of purchasing capacity at each supplier and submitting specific orders during the year to utilize the capacity. Costs and available capacity differ by supplier and time of year. Garments may be produced in advance of need, but their value decreases by 25% each month. (Hint: consider the decrease a holding cost.) Demand for September through December is 3500, 2000, 2500, and 5000 units, respectively. Use the demand and cost information given below to design an aggregate plan for FAD. Find the optimal solution using solve
How much would a garment produced for $12 in September be worth in October???
How many units are produced by supplier 3 in November?
How many units are produced by supplier 3 in October, but not used until December?
What is the cost of the optimal solution?