Newmarket Architects Inc. (NAI) creates six-month zolling aggregate plans, which are recomputed monthly. For competitive reasons...

 

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Newmarket Architects Inc. (NAI) creates six-month "zolling" aggregate plans, which are recomputed monthly. For competitive reasons (they would need to divulge proprietary design criteria, methods, etc.), NAI does not subcontract any of its services. Therefore, NAŤS only options to meet customer requirements are: Work on regular time; 2) Work on overtinme, which is limited to 25% of regular time; 3) Satisfy some of the customers' requirements eadly – which involves an additional "cost" fin the form of a discount offered on usual architectural service fees charged] of $8 per hour per month that the architectural service is performed earlier than required; or 4) Satisfy some of the customers' requirements late, which involves a penalty [deductible from the usnal architectural service fees charged] of $1ỏ per hou per month that the architectural work is performed late-as provided in a penalty clanse in the service contract. NAI employs 24 architects on its staff – working eight hours per day – at an average rate of $60 per hour. Overtime rate is at 150% of regular time rate. Customers' expected architectucal services requirements (in architect-hours) for the next six months are as follows: Febrary 3,000 April 5,500 May 5,500 March June 4,500 July 4,000 3,500 Assume that there 20 working days in each month. Develop an aggregate plan for NAI for the coming six months using an appropriate mathematical programming model which minimizes total relevant costs, such that all requirements are exactly met by the end of the planning horizon. Show your formulation and explain your objective and constraints. Obvionsly, the architect-hours cannot be inventoried, so one cannot refer to beginning or ending inventory levels. The optimal aggregate plan – in its "simple fomat" – should indicate for each month the total number of service hours performed either in excess or short of customers' requirements for that month. Attach as separate exhibits the appropriate computer printouts and worksheets which form the basis for your optimal aggregate plan. 1) State the Objective Function and the Constraints. Newmarket Architects Inc. (NAI) creates six-month "zolling" aggregate plans, which are recomputed monthly. For competitive reasons (they would need to divulge proprietary design criteria, methods, etc.), NAI does not subcontract any of its services. Therefore, NAŤS only options to meet customer requirements are: Work on regular time; 2) Work on overtinme, which is limited to 25% of regular time; 3) Satisfy some of the customers' requirements eadly – which involves an additional "cost" fin the form of a discount offered on usual architectural service fees charged] of $8 per hour per month that the architectural service is performed earlier than required; or 4) Satisfy some of the customers' requirements late, which involves a penalty [deductible from the usnal architectural service fees charged] of $1ỏ per hou per month that the architectural work is performed late-as provided in a penalty clanse in the service contract. NAI employs 24 architects on its staff – working eight hours per day – at an average rate of $60 per hour. Overtime rate is at 150% of regular time rate. Customers' expected architectucal services requirements (in architect-hours) for the next six months are as follows: Febrary 3,000 April 5,500 May 5,500 March June 4,500 July 4,000 3,500 Assume that there 20 working days in each month. Develop an aggregate plan for NAI for the coming six months using an appropriate mathematical programming model which minimizes total relevant costs, such that all requirements are exactly met by the end of the planning horizon. Show your formulation and explain your objective and constraints. Obvionsly, the architect-hours cannot be inventoried, so one cannot refer to beginning or ending inventory levels. The optimal aggregate plan – in its "simple fomat" – should indicate for each month the total number of service hours performed either in excess or short of customers' requirements for that month. Attach as separate exhibits the appropriate computer printouts and worksheets which form the basis for your optimal aggregate plan. 1) State the Objective Function and the Constraints.