Data
Input Data
Demand Forecast Costs
Month
Demand
Forecast
Item Cost
January
280 Materials cost/ton 1,000$
February
301 Inventory holding cost/ton/month 100$
March
277 Marginal cost of stockout/unit/month
April
302 Hiring and training cost/worker
May
285 Layoff cost/worker
June
278 Line hours required/ton 1
July 291 Regular time cost/hour (for team) 1,000$
August 277 Over time cost/hour 1,500$
September 304 Marginal subcontracting cost/unit
October 291
November 302 Max. overtime per employee per month 20 hours
December 297 Starting work force size (teams) 2
January
280 Base sale price / ton 2,600$
February
301 Starting inventory 150
Ending inventory 150
Page 1
Planning
Aggregate Plan Decision Variables
Constraints
Ht Lt Wt Ot It St Ct Pt
Period # Hired # Laid off # Workforce Overtime Inventory Stockout Subcontract Production
Price Workforce Capacity Inventory Overtime
0 0 0 2 0 150 0 0
1 0 0 2 0 100 0 0 230 280 2,600$ 090 040
2 0 0 2 0 100 0 0 301 301 2,600$ 019 040
3 0 0 2 0 100 0 0 277 277 2,600$ 043 040
4 0 0 2 0 100 0 0 302 302 2,600$ 018 040
5 0 0 2 0 100 0 0 285 285 2,600$ 035 040
6 0 0 2 0 100 0 0 278 278 2,600$ 042 040
7 0 0 2 0 100 0 0 291 291 2,600$ 029 040
8 0 0 2 0 100 0 0 277 277 2,600$ 043 040
9 0 0 2 0 100 0 0 304 304 2,600$ 016 040
10 0 0 2 0 100 0 0 291 291 2,600$ 029 040
11 0 0 2 0 118 0 0 320 302 2,600$ 0 0 0 40
12 0 0 2 9 150 0 0 329 297 2,600$ 0 0 0 31
0107 0 0
Aggregate Plan Costs
Period Hiring Lay off Regular Time Overtime Inventory Stockout Subcontract Material
1 0 0 320,000 0 10,000 0 0 230,000
2 0 0 320,000 0 10,000 0 0 301,000
3 0 0 320,000 0 10,000 0 0 277,000
4 0 0 320,000 0 10,000 0 0 302,000
5 0 0 320,000 0 10,000 0 0 285,000
6 0 0 320,000 0 10,000 0 0 278,000
7 0 0 320,000 0 10,000 0 0 291,000
8 0 0 320,000 0 10,000 0 0 277,000
9 0 0 320,000 0 10,000 0 0 304,000
10 0 0 320,000 0 10,000 0 0 291,000
11 0 0 320,000 0 11,800 0 0 320,000
12 0 0 320,000 1,350 15,000 0 0 329,000
Total Cost =
7,453,150$
Total Revenue = 9,061,000$
Profit = 1,607,850$
Only Q&H (1)
Only
Unilock
(2)
Both in
Same
Month (3)
Promote? (0/1/2/3/4) 0
Month (1/12) 4 4 6 6 4
Base Price 2,600$
0.900
Consumption 0.50 -0.50 0.00 0.50 –0.50
Forward Buy 0.20 0.00 0.25 0.20 0.00
Period Demand Demand Demand
1280 280 280
2301 301 301
3277 277 277
4566 151 302
5228 285 285
6222 278 420
7291 291 218
8277 277 208
9304 304 304
10 291 291 291
297
302
Price Fraction after
Discount
Both in Promote in
Different Months (4)
Demand
280
301
277
151
285
392
233
Demand
222
304
291
0
50
350
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Period
Aggregate Plan