Data
Input Data
Demand Forecast Costs
Month
Demand
Forecast
Item Cost
January
12,000 Materials cost/unit 35$
February
11,000 Inventory holding cost/unit/month 4$
March
14,000 Marginal cost of stockout/unit/month
April
20,000 Hiring and training cost/worker
May
25,000 Layoff cost/worker
June
27,000 Labor hours required/unit 2
July 24,000 Regular time cost/hour 10$
August 20,000 Over time cost/hour 15$
September 15,000 Marginal subcontracting cost/unit
October 10,000
November 11,000 Max. overtime per employee per month 20 hours
December 10,000 Starting work force size 250
January
12,000 Base sale price 80$
February
11,000 Starting Inventory 4000
Ending Inventory 4000
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 4,000 0 0
1 0 0 250 0 1,000 0 0 9,000 12,000 80$ 022000 05000
2 0 0 250 0 10,000 0 0 20,000 11,000 80$ 0 0 0 5000
3 0 0 250 0 16,000 0 0 20,000 14,000 80$ 0 0 0 5000
4 0 0 250 0 16,000 0 0 20,000 20,000 80$ 0 0 0 5000
5 0 0 250 0 11,000 0 0 20,000 25,000 80$ 0 0 0 5000
6 0 0 250 0 4,000 0 0 20,000 27,000 80$ 0 0 0 5000
7 0 0 250 0 0 0 0 20,000 24,000 80$ 0 0 0 5000
8 0 0 250 0 0 0 0 20,000 20,000 80$ 0 0 0 5000
9 0 0 250 0 0 0 0 15,000 15,000 80$ 010000 05000
10 0 0 250 0 0 0 0 10,000 10,000 80$ 020000 05000
11 0 0 250 0 0 0 0 11,000 11,000 80$ 018000 05000
12 0 0 250 0 4,000 0 0 14,000 10,000 80$ 012000 05000
08857 0 0
Aggregate Plan Costs
Period Hiring Lay off Regular Time Overtime Inventory Stockout Subcontract Material
1 0 0 400,000 0 4,000 0 0 315,000
2 0 0 400,000 0 40,000 0 0 700,000
3 0 0 400,000 0 64,000 0 0 700,000
4 0 0 400,000 0 64,000 0 0 700,000
5 0 0 400,000 0 44,000 0 0 700,000
6 0 0 400,000 0 16,000 0 0 700,000
7 0 0 400,000 0 0 0 0 700,000
8 0 0 400,000 0 0 0 0 700,000
9 0 0 400,000 0 0 0 0 525,000
10 0 0 400,000 0 0 0 0 350,000
11 0 0 400,000 0 0 0 0 385,000
12 0 0 400,000 0 16,000 0 0 490,000
Total Cost = 12,013,000$
Total Revenue = 15,920,000$
Profit = 3,907,000$
Only Jumbo
(1)
Both in Same
Month (3)
Promote? (0/1/2/3/4) 0
Month (1/12) 4 4 6 6 4
Base Price 80$
0.963
Consumption 0.40 -0.4 0 0.40 -0.4
Forward Buy 0.10 0 0.15 0.10 0
Period Demand Demand Demand
112000 12000 12000
211000 11000 11000
314000 14000 14000
433200 12000 20000
522500 25000 25000
624300 27000 33600
724000 24000 20400
820000 20000 17000
915000 15000 15000
10 10000 10000 10000
10000
11000
Price Fraction after
Discount
Both Promote in Different
Months (4)
Demand
12000
11000
14000
12000
25000
31400
21600
Demand
18000
15000
10000
0
5,000
15,000
20,000
25,000
30,000
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Period
Aggregate Plan
Inventory
Production
Demand
Stockout