hapter $13$ Homework

$1.$ Create an Excel spreadsheet following the instructions on page $554-555.$ Remember that solver will complete all of the cells that are green in the example. Use the solver tool to answer the problem below. Remember to choose Simplex LP $($linear programming$)$ in the solver drop down box. Pay attention to the beginning inventory noted near the end of the problem.

$2.$ Answer the following questions:

$1.$ Given your outcome from the problem above, in Period $4,$ how many monitors will you produce using regular time?

$2.$ How many will you produce using overtime in period $4?$

$3.$ How many will you produce using subcontractors in period $4?$

The production planning period for flat$-$screen monitors at Louisiana$$s Roa electronics, Inc., is $4$ months. Cost data are as follows:

Regular$-$time cost per monitor $ $70$

Overtime cost per monitor $$110$

Subcontract cost per monitor $$120$

Carrying cost per monitor per month $ $4$

For each of the next $4$ months, capacity and demand for flat$-$screen monitors are as follows:

PERIOD

Month $1$ Month $2$ Month $3$a

Month $4$

Demand $2,0002,5001,5002,100$

Capacity

$$Regular time $1,5001,6007501,600$

$$Overtime $400400200400$

$$Subcontract $600600600600$

a Factory closes for $2$ weeks of vacation.

CEO Mohan Roa expects to enter the planning period with $500$ monitors in stock. Back ordering is not permitted $($meaning$,$ for example, that monitors produced in the second month cannot be used to cover first month$$s demand$).$ Develop a production plan that minimizes costs using the transportation method.