Consumers Electronics makes a variety of small household appliances. Various models of toasters, coffee makers, and bread machines account for most of their production. The demand for each product family for the next three months, the average number of each product a worker can produce in a month, and their average holding cost is as follows:

All workers are paid $2000 per month. Hiring a new worker costs $1200 and laying off a worker costs $2500. A new worker goes through one month of on-the-job training, during which he or she can only produce half of the output of a trained worker. Currently, there are 55 workers. Backorders are not allowed.

(a) Formulate a linear (or an integer, if needed) programming model to obtain an aggregate production plan for the company for the next 3 months. Clearly, define the indices, parameters and decision variables, and write the constraints and the objective function.

(b) Using GAMS, develop an optimal production plan for the model developed in part (a). Using the optimal solution, for each month tabulate the amount of units of each product produced, the number of units of each product kept in inventory, the number of employees employed, the number of employees hired, and the number of employees fired.
 

Transcribed Image Text:

Product family 1 Toaster 2000 Coffee maker 2200 Bread machine Month 2 3 2000 2100 2600 2400 900 1200 700 Output/worker Holding cost (units/worker) ($/unit/month) 70 0.85 120 1.25 110 2.10 Product family 1 Toaster 2000 Coffee maker 2200 Bread machine Month 2 3 2000 2100 2600 2400 900 1200 700 Output/worker Holding cost (units/worker) ($/unit/month) 70 0.85 120 1.25 110 2.10

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A a Formulate a linear or an integer if needed programming model to obtain an aggregate production p... View the full answer