Solve with Aggregate planning context provided on the table below. Using excel step by step. a) What
Question:
Solve with Aggregate planning context provided on the table below. Using excel step by step.
a) What is the minimum constant workforce that would allow you to comply with all the demand, the safety stock rule for every month and the minimum allowed inventory at the end of the period?
b) Formulate this aggregate planning problem as a Linear Program
c) Solve the Linear program and provide optimal solution for the cost function and all variables
Aggregate demand forecast
Month | Demand Forecast |
January | 870 |
February | 460 |
March | 800 |
April | 1300 |
May | 2100 |
Current workforce and Inventory
Initial Workforce: 250 workers
Initial Inventory: 400 aggregate units
Costs
Hiring Cost = $400/worker
Layoff Cost = $1200/worker
Salary = $1000/worker-month
Inventory cost = $10/unit-month
Business rules
Minimum allowed inventory at end of planning period: 450 units
Safety stock (minimum allowed inventory on any month): 100 units
Further information
It was observed that in two months with a workforce of 120 workers, the production was 500 aggregate units.
Finite Mathematics and Its Applications
ISBN: 978-0134768632
12th edition
Authors: Larry J. Goldstein, David I. Schneider, Martha J. Siegel, Steven Hair