XYZ Company is preparing its aggregate production plan for 2022. The monthly demand forecasts are given...
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XYZ Company is preparing its aggregate production plan for 2022. The monthly demand forecasts are given in Table 1. Demand 500 600 600 800 1300 2000 2500 3000 2400 1800 1500 12 1200 The company is expected to have 100 workers on the payroll and 150 units in inventory at the end of 2021. Each worker can produce 10 units per month on regular time and 2 units per month in overtime. Table 1 Monthly Demand Forecasts Month RK-F013- RO 1 2 3 4 5 6 7 8 Additional data: 1. Regular time production cost-$200 per unit. 9 2. Overtime production cost-$300 per unit. 3. Hiring cost-$500 per worker 4. Firing cost-$3000 per worker 5. Desired final inventory (December 2022)-100 units 6. Desired final workforce (December 2022)-150 workers ii. 10 iv. 7. Inventory holding cost is charged based on the average inventory at the beginning and end of the month at $50 per unit per month 8. No shortages are allowed. 20.09.2023 a. Determine a production plan using the "chase strategy". b. Determine a production plan using the "level strategy". c. Formulate a LP model that will determine the optimal production plan for 2022. You must define your variables clearly, write out the constraints that must be satisfied explaining the significance of each, and write the objective function with explanation d. Solve the LP model using Excel Solver. You should also submit your Excel file. e. Compare the three production plans (chase strategy, level strategy, and LP solution) with respect to the following: i. Monthly inventory levels Hiring and firing Overtime use Total cost XYZ Company is preparing its aggregate production plan for 2022. The monthly demand forecasts are given in Table 1. Demand 500 600 600 800 1300 2000 2500 3000 2400 1800 1500 12 1200 The company is expected to have 100 workers on the payroll and 150 units in inventory at the end of 2021. Each worker can produce 10 units per month on regular time and 2 units per month in overtime. Table 1 Monthly Demand Forecasts Month RK-F013- RO 1 2 3 4 5 6 7 8 Additional data: 1. Regular time production cost-$200 per unit. 9 2. Overtime production cost-$300 per unit. 3. Hiring cost-$500 per worker 4. Firing cost-$3000 per worker 5. Desired final inventory (December 2022)-100 units 6. Desired final workforce (December 2022)-150 workers ii. 10 iv. 7. Inventory holding cost is charged based on the average inventory at the beginning and end of the month at $50 per unit per month 8. No shortages are allowed. 20.09.2023 a. Determine a production plan using the "chase strategy". b. Determine a production plan using the "level strategy". c. Formulate a LP model that will determine the optimal production plan for 2022. You must define your variables clearly, write out the constraints that must be satisfied explaining the significance of each, and write the objective function with explanation d. Solve the LP model using Excel Solver. You should also submit your Excel file. e. Compare the three production plans (chase strategy, level strategy, and LP solution) with respect to the following: i. Monthly inventory levels Hiring and firing Overtime use Total cost
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