In the next six months a company must, in each month, operate either a normal shift or
Question:
In the next six months a company must, in each month, operate either a normal shift or an extended shift (if it produces at all). A normal shift costs 100,000 per month and can produce up to 5,000 units per month. An extended shift costs 180,000 per month and can produce up to 7,500 units per month.
It is estimated that changing from a normal shift in one month to an extended shift next month costs an extra £15,000. No extra cost is incurred in changing from an extended shift in one month to a normal shift in the next month.
Carrying cost is estimated to be 2 per unit per month (based on the stock held at the end of each month) and the initial stock is 3,000 units (produced by a normal shift). At the end of month 6, at least 2000 units should be in stock. The demand for the company's product is shown below:
Month 1 2 3 4 5 6
Demand 6,000 6,500 7,500 7,000 6,000 6,000
IF the company produces anything in a particular month it must produce at least 2,000 units. If the company wants a production plan for the next six months that avoids stock outs, formulate their problem as an integer program.
How can it be solved using excel solver
i have tried in excel but not getting the write solution.
I can share the work done if needed
GRG Non linear will also work for me.
Government and Not for Profit Accounting Concepts and Practices
ISBN: 978-1118155974
6th edition
Authors: Michael H. Granof, Saleha B. Khumawala