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Optimal production schedule for minimizing the total cost:

Answer Report:

Sensitivity Report

Question: Without resolving, what is the largest fixed payment such that the workers union pro- posal is profitable for Nissan? Can you guess in which weeks would the extra overwork capacity be used, if any?

Previous Question: The workers union representative announces that they are willing to increase the weekly overwork capacity by 15 cars, to a total of 40 cars per week, for a fixed payment of $10,000. Should Nissan take the deal?

Answer: No, don't take the deal. I used solver and the optimal production schedule and total minimum cost stays the same. So don't accept the deal.

Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 215 150 165 225 195 225 Demand 0 0 0 35 15 200 150 200 200 200 200 15 0 0 0 10 0 0 35 10 15 0 Beg. Inventory Prod (Reg) Prod (OT) Ending Inventory Total production Constraints Reg prod limit OT prod limit 215 150 200 235 210 225 200 200 200 200 200 200 25 25 25 25 25 25 400000 300000 400000 400000 400000 Reg prod cost OT prod cost Holding cost 400000 35000 52500 0 0 0 0 0 0 17500 5000 7500 0 Total cost $ 2,417,500 Objective Cell (Min) Cell Name Original Value Final Value $ 2,417,500 $ 2,417,500 $B$30 Total cost Week 1 Variable Cells Cell Name $B$18 Prod (Reg) Week 1 $C$18 Prod (Reg) Week 2 $D$18 Prod (Reg) Week 3 $E$18 Prod (Reg) Week 4 $F$18 Prod (Reg) Week 5 $G$18 Prod (Reg) Week 6 $B$19 Prod (OT) Week 1 $C$19 Prod (OT) Week 2 $D$19 Prod (OT) Week 3 $E$19 Prod (OT) Week 4 $F$19 Prod (OT) Week 5 $G$19 Prod (OT) Week 6 Original Value 200 150 200 200 200 200 Final Value Integer 200 Contin 150 Contin 200 Contin 200 Contin 200 Contin 200 Contin 15 Contin O Contin 0 Contin 0 Contin O Contin 10 Contin 15 0 0 0 0 10 Slack 0 0 35 10 15 0 0 50 0 0 0 Constr Cell Name $B$21 Total production Week 1 $C$21 Total production Week 2 $D$21 Total production Week 3 $E$21 Total production Week 4 $F$21 Total production Week 5 $G$21 Total production Week 6 $B$18 Prod (Reg) Week 1 $C$18 Prod (Reg) Week 2 $D$18 Prod (Reg) Week 3 $E$18 Prod (Reg) Week 4 $F$18 Prod (Reg) Week 5 $G$18 Prod (Reg) Week 6 $B$18 Prod (Reg) Week 1 $C$18 Prod (Reg) Week 2 $D$18 Prod (Reg) Week 3 $E$18 Prod (Reg) Week 4 $F$18 Prod (Reg) Week 5 $G$18 Prod (Reg) Week 6 $B$19 Prod (OT) Week 1 $C$19 Prod (OT) Week 2 $D$19 Prod (OT) Week 3 $E$19 Prod (OT) Week 4 $F$19 Prod (OT) Week 5 $G$19 Prod (OT) Week 6 $B$19 Prod (OT) Week 1 $C$19 Prod (OT) Week 2 $D$19 Prod (OT) Week 3 $E$19 Prod (OT) Week 4 $F$19 Prod (OT) Week 5 $G$19 Prod (OT) Week 6 Cell Value Formula Status 215 $B$21>=$B$15 Binding 150 $C$21>= $C$15 Binding 200 $D$21>=$D$15 Not Binding 235 $E$21>=$E$15 Not Binding 210 $F$21>=$F$15 Not Binding 225 $G$21>=$G$15 Binding 200 $B$18=0 Not Binding 150 $C$18>=0 Not Binding 200 $D$18>=0 Not Binding 200 $E$18>=0 Not Binding 200 $F$18>=0 Not Binding 200 $G$18>=0 Not Binding 15 $B$19>=0 Not Binding 0 $C$19>=0 Binding O $D$19>=0 Binding 0 $E$19>=0 Binding 0 $F$19>=0 Binding 10 $G$19>=0 Not Binding 15 $B$19=$B$15 Binding 150 $C$21>= $C$15 Binding 200 $D$21>=$D$15 Not Binding 235 $E$21>=$E$15 Not Binding 210 $F$21>=$F$15 Not Binding 225 $G$21>=$G$15 Binding 200 $B$18=0 Not Binding 150 $C$18>=0 Not Binding 200 $D$18>=0 Not Binding 200 $E$18>=0 Not Binding 200 $F$18>=0 Not Binding 200 $G$18>=0 Not Binding 15 $B$19>=0 Not Binding 0 $C$19>=0 Binding O $D$19>=0 Binding 0 $E$19>=0 Binding 0 $F$19>=0 Binding 10 $G$19>=0 Not Binding 15 $B$19