M308_SLN - Protected View - Saved to this PC- O Search Mailings Review View Help Question 1 (APP, 50 points total) Mr. Meadows Cookie Company makes a variety of chocolate chip cookies in the plant in Albion, Michigan. Based on orders received and forecasts of buying habits, it is assumed that the demand for the next three months is 600, 900 and 500, expressed in thousands of cookies. During a 50-day period when there were 100 workers, the company produced 2.25 million cookies. Assume that the numbers of workdays in a month is 20. There are currently 50 workers employed, and there is no starting inventory of cookies. a. (10 points) What is the minimum constant workforce (level strategy) required to meet demand (shortages not allowed) over the next three months? Month Cumulative Production Required Cumulative Net Production Required Units Produced Units Number of Workers Needed Produced / Worker 1 2 3 b. (10 points) Assume that the inventory holding cost is 20 cents per cookie per month, hiring cost is $500 per worker, and firing cost is $600 per worker. Evaluate the cost of the plan derived in a Month Production Ending Inventory Beginning Inventory Demand Forecast 1 2 3 Total 0 - Protected View - Saved to this PC- Search ngs Review View Help Total c. (10 points) Find the plan that changes the workforce level each month to most closely match the demand. 2 Month Number of Working Days Number of Units Forecast Net Produced per worker Demand Number of workers required 1 2 3 Month No of Worker s Number Hired Numb er Fired No of Units Per Worker Number of Units produced Cum. Prod. Cum. Dem. Endin g Inv. 1 2 3 TOTAL d. (10 points) Evaluate the cost of the plan derived in c. e. (10 points) Suppose now that you are developing the linear programming formulation of the aggregate planning problem. The top management states that the total cost of hiring and firing cannot exceed $10.000 over the planning period. In addition, due to deterioration limitations the inventory carried on to the next period may not exceed 5000 units at any period due to space limitations. State only the corresponding constraints