Question: please explain and can you solve it manually Yuescion 2 (35 pts): (Duration: 40 minutes) (NOTE: Do not use any software program. You may use
please explain and can you solve it manually
Yuescion 2 (35 pts): (Duration: 40 minutes) (NOTE: Do not use any software program. You may use your calculator.) The production planning manager of Company ABC wants to plan and manage workforce and production levels. Based on the past experience, he estimates that sales over the next six months will be as follows: There are currently 200 workers employed in the company. Assume that each worker stays on the job for at least one month. Each worker can produce 10 products per month.Ending inventory in December is expected to be 300 units, and the company would like to have 200 units on hand at the end of June. a. (10 pts) Policy 1: Suppose that the manager will keep a constant workforce level for the next 6 months and meet all demand on time. Evaluate the cost of that plan. b. (15 pts) Policy 2: The manager will adjust workforce level only once over the next 6 months after month zero (still no backlogging). Evaluate the cost of that plan. Implement each policy (alternative production plan) to obtain the least unit cost given the following information. Hiring Cost =$1000 per worker Lay-off cost=$2000 per worker Holding cost =$5 per product per month Payroll cost =$4000 per month c. (10 pts) Formulate this problem as a linear program (LP) so as to minimize total cost over the planning horizon. Define your index (or indices), decision variables, constraints and objective function, properly. (Do not solve it!)
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