2. An okra fami anticipates highly seasonal demand for their product, tender pods of okra that...

 

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2. An okra fami anticipates highly seasonal demand for their product, tender pods of okra that can be made into the new drink sensation, the okra colada. Their estimate of the demand profile appears below This forocast is based on the demand profile of last year's drink, the tuna colada. Once everyone in the lest market had actually sampled the drink, demand fell to zero. Demand Forecast 1,200 2,400 3,600 4,800 2,200 200 Month January February March April May June The costs for the managerial levers appear in this table. Cost S10 Item Materials cost/unit Inventory holding cost/unit/month Marginal cost of stockout/unit/month Hiring and training cost/worker Layoff cost/worker Labor hours required/unit Regular time cos/hour Over time cost/bour $2 $5 $300 $500 4 $4 $6 Beginning inventory equals Ending inventory greater than Marginal subcontrasting cost/unit 1000 500 $30 The base price per okra colada is $40 per unit and there is no promotion, but management is seriously considering different promotional plans. The beginning workforce level is 80 workers. (a) What should the objective function be when using linear programming to solve this sales and operations planning problem? (Show the math formula of objective function.) (6 points) (b) What constraints should be considered based on the cost info when solving this sales and operations planning problem? (Write down the math formula of constraints.) (8 points) (c) What is the minimum value for the cost of a single stockout to ensure that there are no stockouts during the six-month planning period? (7 points) (d) What is the optimal total cost when using linear programming to solve this sales and operations planning problem? (9pointa) 2. An okra fami anticipates highly seasonal demand for their product, tender pods of okra that can be made into the new drink sensation, the okra colada. Their estimate of the demand profile appears below This forocast is based on the demand profile of last year's drink, the tuna colada. Once everyone in the lest market had actually sampled the drink, demand fell to zero. Demand Forecast 1,200 2,400 3,600 4,800 2,200 200 Month January February March April May June The costs for the managerial levers appear in this table. Cost S10 Item Materials cost/unit Inventory holding cost/unit/month Marginal cost of stockout/unit/month Hiring and training cost/worker Layoff cost/worker Labor hours required/unit Regular time cos/hour Over time cost/bour $2 $5 $300 $500 4 $4 $6 Beginning inventory equals Ending inventory greater than Marginal subcontrasting cost/unit 1000 500 $30 The base price per okra colada is $40 per unit and there is no promotion, but management is seriously considering different promotional plans. The beginning workforce level is 80 workers. (a) What should the objective function be when using linear programming to solve this sales and operations planning problem? (Show the math formula of objective function.) (6 points) (b) What constraints should be considered based on the cost info when solving this sales and operations planning problem? (Write down the math formula of constraints.) (8 points) (c) What is the minimum value for the cost of a single stockout to ensure that there are no stockouts during the six-month planning period? (7 points) (d) What is the optimal total cost when using linear programming to solve this sales and operations planning problem? (9pointa)

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a Assuming Inventory holding cost will be incurred for the opening stock b Since productio... View the full answer