Determine the optimal mix of products


Aggregate Production Planning:                                         
                                           
Model the aggregate production planning problem as a product mix problem to determine the optimal mix of products to be manufactured, given the constraints.  Use MS Excel QM to solve the problem.         

The sun dish satellite system requires manufacture of three products; a high definition receiver, a digital receiver, and a satellite dish.  The initial production plan is for the first six months after the launch of service. The production capacity cannot be changed quickly. Consequently, the production plan would be a level in which the production levels in the first six months stay the same. The company wishes to make at least as many units of each of the three products as the number of customers who can be reached, as predicted by the media selection analysis.  In other words, the company wishes to produce at least 50,000 units of each of the three products if the media selection analysis shows that a total of 50,000 customers will be reached through the various media outlets.  In addition, because fewer customers will need hd receviers compared to digital receivers, the company has to ensure that the number of hd receivers produced is not more than 50 percent of the number of digital receivers produced.       



FABRICATION TIME (hrs) ASSEMBLY TIME (hrs) INSPECTION AND TESTING TIME (hrs) PACKING TIME (hrs)
HD RECEIVERS 0.1 0.15 0.1 0.05
DIGITAL RECEIVERS 0.15 0.12 0.12 0.05
SATELLITE DISHES 0.2 0.18 0.15 0.05
                                                 


FABRICATION  ASSEMBLY  INSPECTION AND TESTING  PACKING 
WORKFORCE COST/hr $ 7.00 9.00 8.5 7.25
AVAILABLE TIME (hrs) 30000 30000 30000 10000

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