Question: Set-up the constraints that will be required to create an optimal production schedule. Assume actual sales are same as demand values.

Overtime, hiring, layoffs, and subcontracting are allowed. Backordering is not allowed; That is, there must be enough inventory in each month to supply that month's expected demand.

YOU ARE NOT REQUIRED TO USE EXCEL-SOLVER. Just provide the constraints for any of the following variables given the information below:

Costs
Regular Time Labour	15
Overtime Labour	22
Subcontracting cost (per unit)	74
Inventory carrying cost (per unit per month)	3
Material cost (per unit)	40
Selling Price (per unit)	125
Hiring Cost (per new employee)	1000
Lay-off cost (per laid off employee)	2000
Starting Inventory	5000
Desired Ending Inventory	5000
Overtime Limit (number of units produced per employee)	10
Production Capacity (per employee per month)	80 units
Starting Workforce	250 workers

Labour hours per unit	2
MAX overtime per month per employee, HOURS	20
# of working days per month	20
# of hours per day	8

DEMAND

10000

11000

16000

19000

22000

25000

31000

28000

22000

19000

13000

12000

B G 4 PERIOD 5 0 (Starting) 6 D H # of employees In Units Ht (#Hired) Lt (# Laid off Wt (Workforce Ot (Overtime It (Inventory Ct (Subcontracted Pt (Production Demand Max OT Available Production Capacit Actual Sales 5000 1 10000 11000 250 7 2 8 3 16000 9 4 19000 10 5 22000 11 6 25000 12 7 31000 13 8 28000 14 9 22000 15 10 19000 16 11 13000 17 12 12000 18 19 Related Costs 20 Period Ht (#Hired) Lt (# Laid off Wt (Workforce Ot (Overtime It (Inventory Ct (Subcontracted Pt (Production Actual Sales 21 22 2 23 3 24 4 25 5 26 6 27 7 28 8 29 9 30 10 31 11 32 12 33 Total over all periods 34 35 Total Cost 36 Total Revenue 37 Total Profit