Question 1:

Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 150 units per month (Cost per Unit = $30 ). Overtime is limited to a maximum of 60 units per month (Cost per Unit =$45). Units purchased from the subcontractor (Cost per Unit = $38 ) cannot exceed 70 per month and the total purchases from the subcontractor over the 6 month period cannot be over 220 units. Backorders cannot exceed 70 units in any given month (Cost per Unit = $5 ) and must be no more than 40 in Period 6. Average Inventory Holding cost per Unit = $10. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below.

Month	1	2	3	4	5	6	Total
Regular Output
Overtime Output
Subcontract
Beginning Inventory	30
Total Available for Sale
Less Forecast	180	210	310	170	150	160
Plus Backlog-Current Period
Less Backlog-Previous Period
Ending Inventory						10
Average Inventory

Question 1 options:

Aggregate Planning Given the projected demands for the next six months, prepare an aggregate plan that uses inventory, regular time, overtime, subcontract and backorders. Regular time is limited to 150 units per month (Cost per Unit = $30 ). Overtime is limited to a maximum of 60 units per month (Cost per Unit =$45). Units purchased from the subcontractor (Cost per Unit = $38 ) cannot exceed 70 per month and the total purchases from the subcontractor over the 6 month period cannot be over 220 units. Backorders cannot exceed 70 units in any given month (Cost per Unit = $5 ) and must be no more than 40 in Period 6. Average Inventory Holding cost per Unit = $10. Forecasted Demand as well as Beginning and desired Ending Inventory are listed in the table below.

Month	1	2	3	4	5	6	Total
Regular Output
Overtime Output
Subcontract
Beginning Inventory	30
Total Available for Sale
Less Forecast	180	210	310	170	150	160
Plus Backlog-Current Period
Less Backlog-Previous Period
Ending Inventory						10
Average Inventory

Required: Find the Minimum Cost Production Plan by Creating a Spreadsheet in Excel. Use Solver to find the Minimum Cost Solution. Leave a copy of your Spreadsheet in the DropBox. Total Cost Month 1 = Total Cost Month 2 = Total Cost Month 3 = Total Cost Month 4 = Total Cost Month 5 = Total Cost Month 6 = Total Cost All Periods =

Question 2:

Below is a table of times for Taxis (A to H) to reach Customers (1 to 8) who need a ride home after a night on the town. The goal is to Minimize the time it takes for all of the Taxis to reach their Customers. Only one Taxi will be sent to each Customer and each Customer needs only one Taxi.

Taxi / Cust	1	2	3	4	5	6	7	8
A	19	16	3	10	19	12	16	8
B	14	4	4	7	18	8	7	4
C	13	3	15	12	14	19	14	5
D	14	14	13	4	9	17	9	11
E	5	16	16	14	17	19	4	6
F	19	12	6	13	7	18	16	7
G	12	12	9	15	18	8	13	15
H	7	12	18	14	2	4	5	18

The optimal solution to this problem requires the following:

Taxi A picks up Customer = Taxi B picks up Customer = Taxi C picks up Customer = Taxi D picks up Customer = Taxi E picks up Customer = Taxi F picks up Customer = Taxi G picks up Customer = Taxi H picks up Customer = Minimum Cost =