Design a production plan for Mama’s Stuffin’ in Problem 14-4 using linear programming and Excel Solver.

a) Annual demand= 36,000 pallets Average annual demand = 36,000/12= 3,000 Total number of workers needed =3000/200 = 1 workers Extra workers needed= 15-10= 5 workers DEMAND FORECAST 2000 1000 1000 1000 1000 1500 2500 3000 9000 7000 4000 3000 36,000 MONTH 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL PRODUCTION PLAN 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 3000 36,000 Total cost (Demand forecast Regular production cost) +(Inventory Holding cost) +(No.of extra workers-Hiring cost) Total cost (36,000x $30)+(63,500 $2)+(55000) = $1,232,000 INVENTORY 1000 3000 5000 7000 9000 10,500 11,000 11,000 5000 1000 0 0 63,500