Lecture 5 - Red_Tomato_Tools

Lecture 5 - Red_Tomato_Tools - Problem Aggregate Planning...

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Problem Page 1 Aggregate Planning Problem of Red Tomato Tools Demand Forecast (Scenario 1) Demand Forecast (Scenario 2: Hi Month Demand Forecast Month January 1,600 January February 3,000 February March 3,200 March April 3,800 April May 2,200 May June 2,200 June Costs Item Cost Materials cost/unit $10 Inventory holding cost/unit/month $2 Marginal cost of stockout/unit/month $5 Hiring and training cost/worker $300 Layoff cost/worker $500 Labor hours required/unit 4 Regular time cost/hour $4 Over time cost/hour $6 Marginal subcontracting cost/unit $30
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Problem Page 2 igher seasonal fluctuations) Demand Forecast 1,000 3,000 3,800 4,800 2,000 1,400
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Page 3 Aggregate Plan Decision Variables Period # Hired # Laid off # Workforce Overtime Inventory Stockout Subcontract Production Demand Price 0 0 0 80 0 1,000 0 0 1 0 0 0 0 0 0 0 0 1,600 40 2 0 0 0 0 0 0 0 0 3,000 40 3 0 0 0 0 0 0 0 0 3,200 40 4 0 0 0 0 0 0 0 0 3,800 40 5 0 0 0 0 0 0 0 0 2,200 40 6 0 0 0 0 0 0 0 0 2,200 40 0 83 0 0 Aggregate Plan Costs Period Hiring Lay off Regular time Overtime Inventory Stockout Subcontract Material 1 0 0 0 0 0 0 0 0 2
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This note was uploaded on 07/04/2011 for the course MGSC 491 taught by Professor Nair during the Spring '11 term at South Carolina.

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Lecture 5 - Red_Tomato_Tools - Problem Aggregate Planning...

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