Question: Extend SureSteps original (no backlogging) aggregate planning model from four to six months. Given the file P14_30.xlsx, add a forecasted demand of 5,000 units to
Extend SureSteps original (no backlogging) aggregate planning model from four to six months. Given the file P14_30.xlsx, add a forecasted demand of 5,000 units to Month 5, and of 3,000 units to Month 6. Is your optimal solution for the first four months of the extended model the same as it was for the original model? Enter all differences for workers hired, fired, overtime labor hours used, and shoes produced. Use negative quantities for decreases. If a quantity is unchanged, enter zero.
| Differences from Original model | Month 1 | Month 2 | Month 3 | Month 4 |
| Workers hired | ||||
| Workers fired | ||||
| Overtime labor hours used | ||||
| Shoes produced |
| SureStep aggregate planning model | ||||||||||||
| Input data | ||||||||||||
| Initial inventory of shoes | 500 | |||||||||||
| Initial number of workers | 100 | |||||||||||
| Regular hours/worker/month | 160 | |||||||||||
| Maximum overtime hours/worker/month | 20 | |||||||||||
| Hiring cost/worker | $1,600 | |||||||||||
| Firing cost/worker | $2,000 | |||||||||||
| Regular wages/worker/month | $1,500 | |||||||||||
| Overtime wage rate/hour | $13 | |||||||||||
| Labor hours/pair of shoes | 4 | |||||||||||
| Raw material cost/pair of shoes | $15 | |||||||||||
| Holding cost/pair of shoes in inventory/month | $3 | |||||||||||
| Worker plan | Month 1 | Month 2 | Month 3 | Month 4 | ||||||||
| Workers from previous month | 100 | 94 | 93 | 50 | ||||||||
| Workers hired | 0 | 0 | 0 | 0 | ||||||||
| Workers fired | 6 | 1 | 43 | 0 | ||||||||
| Workers available after hiring and firing | 94 | 93 | 50 | 50 | ||||||||
| Regular-time hours available | 15040 | 14880 | 8000 | 8000 | ||||||||
| Overtime labor hours used | 0 | 80 | 0 | 0 | ||||||||
| <= | <= | <= | <= | |||||||||
| Maximum overtime labor hours available | 1880 | 1860 | 1000 | 1000 | ||||||||
| Total hours for production | 15040 | 14960 | 8000 | 8000 | ||||||||
| Production plan | Month 1 | Month 2 | Month 3 | Month 4 | ||||||||
| Shoes produced | 3760 | 3740 | 2000 | 1000 | ||||||||
| <= | <= | <= | <= | |||||||||
| Production capacity | 3760 | 3740 | 2000 | 2000 | ||||||||
| Inventory after production | 4260 | 5000 | 2000 | 1000 | ||||||||
| >= | >= | >= | >= | |||||||||
| Forecasted demand | 3000 | 5000 | 2000 | 1000 | ||||||||
| Ending inventory | 1260 | 0 | 0 | 0 | ||||||||
| Monetary outputs | Month 1 | Month 2 | Month 3 | Month 4 | Totals | |||||||
| Hiring cost | $0 | $0 | $0 | $0 | $0 | |||||||
| Firing cost | $12,000 | $2,000 | $86,000 | $0 | $100,000 | |||||||
| Regular-time wages | $141,000 | $139,500 | $75,000 | $75,000 | $430,500 | |||||||
| Overtime wages | $0 | $1,040 | $0 | $0 | $1,040 | |||||||
| Raw material cost | $56,400 | $56,100 | $30,000 | $15,000 | $157,500 | |||||||
| Holding cost | $3,780 | $0 | $0 | $0 | $3,780 | |||||||
| Totals | $213,180 | $198,640 | $191,000 | $90,000 | $692,820 | Objective to minimize |
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