Production and Operations Analysis 7th edition Steven Nahmias and TL Olsen
The topic for this chapter is sales and operation planning.
A local firm manufactures children's toys. The projected demand over the next four months for one particular model of toy robot is as follows:
MONTH---------------WORKDAYS------------FORECAST DEMAND (IN AGGREGATE UNITS)
July 23 3825
August 16 7245
September 20 2770
October 22 4440
Assume that the normal workday is 8 hours. Hiring costs are $350 per worker and firing costs (including severance pay) are $850 per worker. Holding costs are $4 per aggregate unit held per month. Assume that it requires an average of 1 hour 40 min for one worker to assemble one toy. Shortages are not allowed. Assume that the ending inventory for June was 600 of these toys and the manager wishes to have at least 800 units on hand at the end of October. Assume that the current workforce level is 35 workers. FIND THE OPTIMAL PLAN BY FORMULATING AS A LINEAR PROGRAM.