Data
Input Data
Demand Forecast Costs
Month
Demand
Forecast
Item Cost
January
10,000 Materials cost/unit 40$
February
11,000 Inventory holding cost/unit/month 3$
March
15,000 Marginal cost of stockout/unit/month
April
18,000 Hiring and training cost/worker 1,000$
May
25,000 Layoff cost/worker 2,000$
June
26,000 Labor hours required/unit 2
July 30,000 Regular time cost/hour 15$
August 29,000 Over time cost/hour 22$
September 21,000 Marginal subcontracting cost/unit
October 18,000
November 14,000 Max. overtime per employee per month 20 hours
December 11,000 Starting work force size 250
January
10,000 Base sale price 125$
February
11,000 Starting inventory 5000
Ending inventory 5000
Page 1
Planning
Aggregate Plan Decision Variables Constraints
HtLtWtOtItStCtPt
Period # Hired # Laid off # Workforce Overtime Inventory Stockout Subcontract Production Demand Price Workforce Capacity Inventory Overtime
0 0 0 250 0 5,000 0 0
1 0 0 250 0 15,000 0 0 20,000 10,000 125$ 0 0 0 5000
2 0 0 250 0 24,000 0 0 20,000 11,000 125$ 0 0 0 5000
3 0 0 250 0 29,000 0 0 20,000 15,000 125$ 0 0 0 5000
4 0 0 250 0 31,000 0 0 20,000 18,000 125$ 0 0 0 5000
5 0 0 250 0 26,000 0 0 20,000 25,000 125$ 0 0 0 5000
6 0 0 250 0 20,000 0 0 20,000 26,000 125$ 0 0 0 5000
7 0 0 250 0 10,000 0 0 20,000 30,000 125$ 0 0 0 5000
8 0 0 250 0 1,000 0 0 20,000 29,000 125$ 0 0 0 5000
9 0 0 250 0 0 0 0 20,000 21,000 125$ 0 0 0 5000
10 025 225 0 0 0 0 18,000 18,000 125$ 0 0 0 4500
11 038 188 0 1,000 0 0 15,000 14,000 125$ 0 0 0 3750
12 0 0 188 0 5,000 0 0 15,000 11,000 125$ 0 0 0 3750
021429 0 0
Aggregate Plan Costs
Period Hiring Lay off Regular Time Overtime Inventory Stockout Subcontract Material
1 0 0 600,000 0 45,000 0 0 800,000
2 0 0 600,000 0 72,000 0 0 800,000
3 0 0 600,000 0 87,000 0 0 800,000
4 0 0 600,000 0 93,000 0 0 800,000
5 0 0 600,000 0 78,000 0 0 800,000
6 0 0 600,000 0 60,000 0 0 800,000
7 0 0 600,000 0 30,000 0 0 800,000
8 0 0 600,000 0 3,000 0 0 800,000
9 0 0 600,000 0 0 0 0 800,000
10 0 50,000 540,000 0 0 0 0 720,000
11 0 75,000 450,000 0 3,000 0 0 600,000
12 0 0 450,000 0 15,000 0 0 600,000
Total Cost = 16,571,000$
Total Revenue = 28,500,000$
Profit = 11,929,000$
Promote? (0/1) 0
Month (1/12) 7
Base Price 125$
0.990
Consumption 0.20
Forward Buy 0.10
Price Fraction after
Discount